Postnuptial Agreement Can Help During High-Net Worth Divorce
When two married people in Illinois have irreconcilable differences, divorce may be their only solution. Having a postnuptial agreement in place may help to make the process easier for both parties, especially in a high-net worth divorce. These types of agreements are signed by both parties after they have gotten married, and they explain how their assets will be divvied up in the event they get divorced.
Two people might choose to create and sign a prenuptial agreement if one person inherits a large sum of money. The agreement ensures that this person’s inheritance is protected according to his or her wishes if the married couple ends up divorcing. This is especially important if families want to make sure that all of their wealth will stay in the bloodline; in this case, the spouse has to waive any interests in the riches being bestowed on the person inheriting them.
Postnuptial agreements are also helpful if one of the married individuals is going into a family business or a business that is privately held. Another good reason to enter into a postnuptial agreement is if one has acquired an interest in a private equity firm or hedge fund. Sometimes, businesses require that the owner sign a postnuptial agreement with his or her non-owner in order to keep the business from being scrutinized by forensic evaluators if the owner decides to divorce his or her spouse.
It is critical that a postnuptial agreement is not one-sided. It also has to be the result of a negotiation where both spouses are represented by attorneys whom they choose. Otherwise, the postnuptial agreement will not be enforceable during their potential high-net worth divorce. Proper legal guidance may help people to pursue their fair share of assets and safeguard their interests through this type of contract in Illinois.
Source: wealthmanagement.com, “A Potential Alternative to Divorce“, Lois Liberman, Aug. 10, 2015