What is a Post Nuptial Agreement in the Philippines?

Jun 16, 2022

Knowing that you and your spouse have similar financial goals and life objectives is crucial to a successful relationship. You'll be better off if you and your partner have this chat as soon as possible. Consider prenuptial agreements before getting married and discuss your partner's income or financial objectives.

Prenuptial agreements aren't only for the renowned, affluent, and rich, as is often believed. They may assist couples in supporting one another as they set clear and realistic goals and expectations for their union.

Pre and Post Nuptial Agreements

A postnuptial agreement is a contract you and your spouse sign after you are married to resolve marital troubles. It is comparable to a prenuptial agreement. However, it takes place after the Marriage. For couples who marry without a prenuptial agreement, it is not too late to establish a postnuptial agreement that addresses concerns of property division, financial management, spousal support, and business split in the event of a divorce or annulment. 

Even if your Marriage is going well, you may still sign a postnuptial agreement. People develop and evolve throughout time. It is impossible to anticipate if your connection with your partner will remain the same in the future. It is a type of contingency planning if the Marriage does not work out in the future.

Post Nuptial Agreement Philippines

While divorce is not permitted under Philippine law, prenuptial agreements can "settle the property relations during the marriage within the boundaries of this Code."

Article 1 of the Family Code of the Philippines states, "Marriage is a special contract of permanent union between a man and a woman entered into following law to establish conjugal and family life. It is the foundation of the family and an inviolable social institution whose nature, consequences, and incidents are governed by law and not subject to stipulation, except that marriage settlements may fix the property relations during the Marriage within limits provided by this Code."

A postnuptial agreement may safeguard each spouse's assets in a failed marriage. If both parties can agree on whose property is, it will save future conflict and substantial legal fees.

A postnuptial agreement may also be adjusted to each couple's particular circumstances. They are allowed to include unique and special stipulations about their partnership and legal and financial terms.

What Is Included in Post Nuptial Agreement

Here are the things to consider to include in your agreement. While a lot of what is recognized and upheld in a postnuptial agreement:

Asset division: Before getting married, each partner may have had their assets and belongings from their previous relationships. Or, the pair could amass wealth and real estate while still married. A postnuptial agreement may specify what should become to these assets in any of these scenarios should the Marriage fail.

Marital debts: A married pair may acquire debts throughout a marriage, just as they may acquire assets. These debts could be from credit cards, but they might also be from a mortgage, any yearly subscriptions, or even joint monthly payments for things like childcare and medical care. Married couples may wish to add details about how they'll distribute these debts in the event of a divorce in their will.

Child support/care: If the couple has children, they may insert a clause in the postnuptial agreement that addresses child support and custody. The details of what should occur in the case of a legal separation might be reasonably explicit in sections like this. For instance, a postnuptial agreement might specify precisely which days of the week or times each parent has custody of the child or children.

Spousal Support: Include spousal support in the agreement if the parties to the Marriage agree that one of them is entitled to it. This often occurs when one partner quits their career to care for the family at home.

Asset distribution in the event of a death: A postnuptial agreement may also specify what will happen to the assets if one spouse dies while the couple is still married. Depending on whether the couple was contemplating divorce or annulment or amid the process when one of them died away, the agreement may include precise instructions on what happens to assets. Usually, this clause takes precedence over a final will and testament.

Division of Assets

In pre and postnuptial agreements, you may also determine the division of properties. For instance, "B" is a residence or rental home. A place bought during the Marriage is often considered communal property and must be split equally.

A home acquired before Marriage is considered separate property; but, if a mortgage or refinancing occurred during the Marriage and the monthly mortgage payment was made from money earned during the Marriage, there may be a community interest in the real estate home that entitles your spouse to a piece of the house. A postnuptial contract may clarify this ambiguity. In a failed marriage, you may decide who gets the home and what assets your husband would get. 

To construct pre or postnuptial agreements, however, you will often require a lawyer. They can counsel you and will know what must be done for your jurisdiction. Ask your lawyer whether your jurisdiction requires you and your spouse to hire separate attorneys to prevent conflicts. Postnuptial agreements are lawful contracts.

Reasons to Consider Postnuptial Agreement

There may be various reasons you might want to consider a postnuptial agreement if you get married. Among married couples, the following are some of the frequent causes:

More preparation: Some couples only need some explanation about their potential future circumstances, should things not turn out as they had hoped. Although the couple may not have given a prenuptial agreement much thought, they believe that a postnuptial agreement is a security for the future.

Children's asset protection: If either party to the Marriage has children from prior partnerships, they may wish to ensure their beneficiaries get certain assets. A postnuptial agreement could cover this.

Self-asset protection: A significant promotion or a family bequest might result in a significant financial rise for one or both partners. They could wish to safeguard it so they won't have to split their new income with their spouse in the event of a divorce.

Financial irresponsibility: During a marriage, a partner may have financial or legal issues that they want to make sure don't affect them in the event of a divorce. For instance, a postnuptial agreement may provide that the spouse who racked up a lot of debt via gambling would be exclusively responsible for paying it off in the event of a divorce.

Spousal support: In a marriage, one partner may provide support for the other. This might happen when a parent decides to remain at home to care for their children after having children. The spouses may wish to understand spousal maintenance if the Marriage ends in divorce initially.

A pre and postnuptial agreement is a crucial subject that all engaged couples should talk about. It allows you more control over the division or sharing of your existing and future assets in a manner that seems equitable to your spouse.

For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.  

Also Read: Top 7 Reasons Why June is the Month of Weddings

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