Couples who are financially well off usually have a prenuptial agreement to protect each other’s assets. However, if you did not have an agreement or you earned your wealth after marrying, then you may wonder what will happen if you divorce.
WealthMangement.com explains if you find yourself ready to file for divorce but concerned about the financial implications, you and your spouse may find a good solution is to create a separation contract.
A postnuptial agreement
A separation contract is a postnuptial agreement, meaning you create it after you marry. It is very similar to a prenuptial agreement. You can spell out the details of what will happen in your divorce. It allows you to allocate assets, determine spousal support and manage all the important details of separating your lives. The only thing you cannot do it determine child support or custody.
It is important to understand that a separation agreement will also protect you if you decide to legally separate and not fully divorce. As long as you ensure the agreement meets all legal requirements, the court should have no issues abiding by it.
You should consider the separation agreement as a guide. It can help you to move through a separation or divorce more easily because you already have a plan in place. You can create it at any time after you marry, even right before you formally separate.
Do keep in mind that you both must agree to the contents of the agreement. You both must sign off on it. You cannot coerce or force your spouse to sign it. If you cannot agree, then you will probably have to be at the mercy of the court and the state law when it comes to dividing your property, which may not be the most beneficial situation for either of you. It is well worth at least proposing the creation of a separation agreement to your spouse if you feel divorce may be in your future.