Many Virginia couples start a marriage with little in the way of assets. As time goes on, assets generally start to accumulate with increases in income and career growth.
This means that if you decide to divorce, you might find you have a high-asset divorce. This is usually considered a divorce involving high-value, complex assets such as homes, businesses or investments.
To avoid the potential negative financial implications of a high-asset divorce, you may consider a post-nuptial agreement.
What is a post-nuptial agreement?
A post-nuptial agreement is essentially the same as a pre-nuptial agreement. The main difference is a post-nuptial agreement is signed after marriage instead of before. A post-nuptial agreement is a legally binding contract signed by both spouses stating how assets will be divided.
Virginia is an equitable distribution state. Marital assets are divided equitably, or fairly, in a divorce. Equitably does not mean equally, although an equal distribution is typically presumed fair.
However, this might not be the outcome you want if you hold a significant number of high assets. Without a post-nuptial agreement stating how your marital assets will be divided, you will be subject to Virginia’s equitable distribution laws.
A post-nuptial agreement gives you and your spouse more of a say in the outcome. For example, perhaps you are willing to take a smaller share of the marital assets in exchange for keeping a family business or an inheritance.
Post-nuptial agreement requirements
There are several requirements for a valid post-nuptial agreement. Both spouses must enter into the agreement voluntarily and with all financial information honestly disclosed.
Evidence that one spouse has hidden or downplayed the value of certain marital assets are grounds to invalidate a post-nuptial agreement.
A post-nuptial agreement cannot be unconscionable, meaning that it is so one-sided that no reasonable spouse would sign it. These are some factors a court will examine if you divide assets pursuant to a post-nuptial agreement.
Therefore, it is important to be honest and fair. You are likely to be happier with the terms of a post-nuptial agreement because you had a say in the outcome.
