Three Benefits to Creating a Postnuptial Agreement in Illinois

 Posted on April 26, 2022 in Family Law

You may be familiar with prenuptial agreements and their role in keeping assets separate as a couple enters marriage. Less well-known is the postnuptial agreement. Like a prenup, it can be an excellent way to protect individual assets, including property, life insurance considerations, and financial responsibilities. For a postnuptial agreement to be enforceable, it should be something that both spouses agree on. Working with a family law attorney before entering into any postnuptial agreement is also recommended.

What Are the Benefits of a Postnuptial Agreement?

A postnuptial agreement can:

• Protect significant individual wealth - For partners who brought considerable wealth into a marriage, such as a business, real estate property, or retirement savings, those assets can be kept separate from the marital estate in the postnuptial agreement. A postnuptial agreement may also be a smart move for you and your spouse if one of you has recently experienced a significant financial change, including a large inheritance or gift, or has recently acquired valuable property.
• Protect a spouse from the risks of the other spouse’s business venture - If one spouse starts a new business during the marriage, they may want to insulate their marriage assets from any debt the new business occurs. If the company were to fail, the agreement could protect the marital assets of the couple from being put at risk.
• Safeguard assets if you are considering divorce - For couples who are having marital difficulties but who have not yet begun the divorce process, a postnuptial agreement can be used to safeguard certain assets that were brought into the marriage by each individual. However, you cannot make arrangements for child custody or child support in the agreement. Those decisions can only be made during the legal divorce proceedings.

How Is a Postnuptial Agreement Used in an Illinois Divorce?

If your marriage does end in a divorce, the judge will use a postnuptial agreement as the basis for property division as long as it is fair and both parties entered into the agreement in good faith. Since Illinois is an equitable distribution state, marital assets and property will be divided fairly, not evenly, between the spouses. Therefore, any prenuptial or postnuptial agreement will set a framework for the judge’s decision, but the final division of property is up to their discretion.

Contact A Chicago Postnuptial Agreement Lawyer

For your questions about postnuptial agreements and whether one may be suitable for your marriage, contact an Park Ridge family law attorney at The Law Office of George J. Skuros. We will discuss your financial situation, help you understand your options, and discuss what you may want to include in a postnuptial agreement. Contact our office at 312-884-1222 for a free, confidential consultation.

Sources:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&ChapterID=59

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ChapterID=59&ActID=2086