Postnuptial Agreements in Colorado
Like a prenup, postnuptial agreements in Colorado protect the assets of each spouse should the marriage end in divorce. The difference, however, is that these contracts are drafted after marriage, not before. Even if no divorce is anticipated, couples often decide to formalize terms concerning their assets and liabilities as protection. These agreements create predictability and a sense of security.
Matters can get complicated if a couple decides to live together without getting married or even after divorce. Even if unmarried, couples can seek the same sort of protection that prenuptial and postnuptial agreements offer. These deals are called cohabitation agreements. While all unwed couples can use them, they are particularly popular for same-sex relationships.
These agreements are sought when one or both partners:
- Own valuable assets
- Have children from a previous relationship
- Have children together but are unmarried
- Own their own business
The Difference of a Cohabitation Agreement
Since the partners in a cohabitation agreement are unwed, the contract is not subject to family law. Unlike prenuptial and postnuptial agreements, if one partner in a cohabitation agreement is noncompliant, then a Circuit Civil Court will enforce the agreement only after a civil lawsuit is filed. Both sides will be required to provide evidence and a judge will determine the final outcome of the agreement and its fulfillment.
Oftentimes the terms of a cohabitation agreement will include:
- Shared Expenses
- Financial or child support
- Shared expenses
- General expectations
While the terms of cohabitation agreements are similar to those of prenuptial and postnuptial agreements, since they are unwed the couple will not receive marriage benefits from the state.
Benefits of Postnuptial and Cohabitation Agreements
While drafting these agreements may seem unromantic, they’ve become increasingly popular as divorce rates continue to hover around 50 percent. People with a high net worth or any assets are more likely to seek an agreement to protect themselves against the end of the relationship. However, these agreements can also be used in valuable estate planning. Benefits for prenuptial and postnuptial agreements include:
- Reducing the federal estate tax
- Preserving Marital Deduction should one spouse pass away
- Financial security for the widowed spouse
For unwed couples, there are similar rights available such as the opportunity to inherit the property as well as be able to make funeral arrangements for a deceased partner.
These agreements can be complicated to navigate and are extremely important because they protect you and your partner’s assets. Colorado family law attorneys from Mike Hulen, PC can give you advice and guidance to optimize your chances of settling a family matter. Contact our trusted attorneys at (303) 932-8666.