Creating a postnuptial agreement for asset protection is a proactive step for couples in Georgia who wish to clarify financial rights and responsibilities after marriage. At Hobson & Hobson, P.C., we leverage over 30 years of combined experience to help clients secure their financial futures with clarity and confidence.
What Is a Postnuptial Agreement?
A postnuptial agreement is a legally binding contract between spouses, established after marriage, that details how assets, debts, and financial matters will be handled in the event of divorce or death. Unlike prenuptial agreements, which are signed before marriage, postnuptial agreements are crafted during the marriage, often in response to significant life changes or evolving financial circumstances.
Why Consider a Postnuptial Agreement for Asset Protection?
Asset protection is a primary motivation for couples considering a postnuptial agreement. These agreements can:
- Clearly define ownership and division of property, including real estate, retirement accounts, business interests, and inheritances.
- Specify responsibility for existing and future debts.
- Protect business interests and ensure business continuity.
- Reduce uncertainty and potential conflict in the event of separation or divorce.
In Georgia, the trend toward postnuptial agreements is growing, especially among couples with blended families, business interests, or significant separate property. This reflects a broader movement toward proactive financial planning and asset protection.
Georgia’s Legal Requirements for Postnuptial Agreements
Georgia law (Georgia Code § 19-3-66) recognizes postnuptial agreements, but for them to be enforceable, several key requirements must be met:
1. Voluntary Consent
Both spouses must enter the agreement willingly. Any sign of coercion, pressure, or duress can render the agreement invalid. Courts in Georgia scrutinize the circumstances under which the agreement was signed to ensure fairness.
2. Full Financial Disclosure
Each spouse must fully and honestly disclose all assets, debts, income, and financial obligations. Concealing or misrepresenting financial information can nullify the agreement.
3. Fair and Reasonable Terms
The agreement must not be excessively one-sided or unconscionable. Georgia courts will not enforce agreements that are deemed grossly unfair to one party.
4. Written and Signed
The agreement must be in writing and signed by both parties. While notarization is not strictly required by law, it is strongly recommended to bolster enforceability.
5. Independent Legal Counsel
Although not mandatory, it is highly advisable for each spouse to have separate legal representation. This ensures that both parties’ interests are protected and reduces the risk of future challenges to the agreement.
6. Exclusions: Child Support and Custody
Georgia law prohibits postnuptial agreements from determining child support or custody. These matters are decided by the court based on the child’s best interests at the time of divorce.
Common Pitfalls and How to Avoid Them
Despite their benefits, postnuptial agreements can be challenged or invalidated if not properly drafted. Common pitfalls include:
- Incomplete or inaccurate financial disclosure.
- Evidence of coercion or lack of voluntary consent.
- Unfair or one-sided terms.
- Attempting to address child custody or support.
Professional advice: “Complete financial transparency is essential. Both parties should fully disclose their assets, debts, and financial obligations to ensure the agreement is based on accurate and comprehensive information.” (Georgia family law expert)
The Process: How We Help at Hobson & Hobson
At Hobson & Hobson, we guide clients through every step of creating a postnuptial agreement for asset protection:
Initial Consultation
We begin with a confidential consultation to understand your unique circumstances, goals, and concerns. Our attorneys explain the legal framework, answer your questions, and outline the process.
Full Financial Disclosure
We assist both parties in gathering and presenting comprehensive financial information. This step is critical for transparency and enforceability.
Drafting the Agreement
Our attorneys draft a customized agreement tailored to your specific needs. We address all relevant financial matters, including property division, spousal support, debt allocation, and treatment of inheritances or gifts.
Independent Review
We strongly recommend that each spouse have the agreement reviewed by independent legal counsel. This ensures fairness and reduces the likelihood of future disputes.
Execution and Notarization
Once both parties are satisfied, the agreement is signed and, ideally, notarized. We retain copies for your records and provide guidance on when and how to revisit the agreement as circumstances change.
The Value of Professional Guidance
Working with experienced family law attorneys is essential for creating an enforceable postnuptial agreement. At Hobson & Hobson, we offer:
- Expert guidance: Our team stays current with evolving family law and leverages advanced technology for efficient, seamless service.
- Customized solutions: We tailor agreements to address complex issues such as business ownership, blended families, and significant assets.
- Dispute prevention: By crafting clear, fair agreements, we help prevent future litigation and protect your interests.
Costs and Trends
The average legal fee for drafting a postnuptial agreement in Georgia is around $1,000, but this can vary based on complexity and attorney experience. Increasingly, couples are using postnuptial agreements as part of broader estate and asset protection strategies, especially in high-asset or blended family situations.
Frequently Asked Questions
What is the difference between a prenuptial and postnuptial agreement?
A prenuptial agreement is signed before marriage, while a postnuptial agreement is created after marriage. Both serve to clarify financial rights and responsibilities, but postnuptial agreements are often used in response to changes in circumstances during the marriage.
Can a postnuptial agreement cover child custody or support?
No. Georgia law prohibits postnuptial agreements from determining child custody or support. These issues are decided by the court based on the best interests of the child.
Are postnuptial agreements enforceable in Georgia?
Yes, provided they meet legal requirements: voluntary consent, full financial disclosure, fair terms, and proper execution. Courts may invalidate agreements that are unfair, signed under duress, or lacking disclosure.
How often should we update our postnuptial agreement?
It’s wise to review your agreement periodically, especially after major life changes such as the birth of a child, significant inheritance, or changes in business interests.
Why should each spouse have their own attorney?
Independent legal counsel ensures that both parties fully understand the agreement and that their rights are protected. This also strengthens the agreement’s enforceability.
Additional Resources
- Georgia Code § 19-3-66
- American Bar Association: Postnuptial Agreements
- Nolo: Postnuptial Agreements
- Forbes: What Is a Postnuptial Agreement?
- Hobson & Hobson, P.C.
Why Choose Hobson & Hobson for Your Postnuptial Agreement?
With five convenient office locations in Atlanta, Canton, Marietta, Alpharetta, Milton, and Roswell, we are accessible and responsive to our clients’ needs. Our approach balances empathy with aggressive advocacy, ensuring your interests are protected — whether you seek an amicable resolution or require strong litigation support.
We invite you to schedule an initial consultation to discuss your asset protection goals and learn how a postnuptial agreement can provide peace of mind for your future. Visit us at thehobsonlawfirm.com to get started.
This article is for informational purposes only and does not constitute legal advice. For guidance tailored to your situation, please consult with a qualified family law attorney.
