Family Law

In February, the TV-talk-show psychologist Dr. Phil introduced his viewers to a new twist in domestic drama: a husband asking his wife to sign a postnuptial agreement. A postnup? Like a prenup, a postnup is a contract that divides a family?s assets between spouses ? only this time it comes after the marriage vows have been spoken.      

Postnups are fast becoming a familiar part of the marriage-law landscape. A poll published this year by the American Academy of Matrimonial Lawyers found that almost half its members had seen an increase in the practice. Most states now recognize postnups (though many still place significant restrictions on them).

One reason couples use postnups, according to Stuart S. Greenfeig, a Maryland attorney who specializes in them, is to try to shore up rocky marriages. ?They generally arise when there?s concern about the stability of the marriage ? for example, when one spouse has committed adultery,? he says. Some clients wanting a divorce may end up reconciled through a postnup that guarantees more assets to the aggrieved spouse. Postnups also arise from simple economics: when a couple goes through a major financial change ? the wife gets a major promotion and a significant income increase, for example ? they may want to renegotiate their original terms. (Many postnup couples already have prenups.)

But why so many of these agreements now? One factor is that hedge funds and other high-value equity partnerships increasingly urge new partners to get postnups. It?s a phenomenon of the new gilded age: postnups assure such firms that a divorcing partner won?t be giving away part-ownership.

Thanks to the New York Times.