Post-nuptial agreements becoming more common

Postnuptial agreements are on the rise with wealthy couples, reports Wealth Adviser at WSJ.com. The agreements, unlike their better-known sibling, prenuptial agreements, are signed after the wedding–sometimes years later. Similar to prenups, postnups are contracts that primarily spell out how assets and liabilities would be split upon divorce or death.The reasons for one spouse to suggest a postnup can include to punish the partner for bad behavior, such as infidelity, or to show commitment to a fractured marriage by guaranteeing a richer settlement for the partner if things don’t work out, lawyers say. In some families, an older generation may demand an adult child sign a postnup before naming him or her to inherit a business. “It’s a less-loaded [discussion] than the ‘Please sign here before we walk down the aisle,’” Michelle Smith, a financial adviser in New York who specializes in divorce, tells Wealth Adviser.