What is a postnuptial agreement?

A postnuptial agreement is a legal contract signed by a couple either married or entered into a civil union regarding the distribution of assets in the event of legal separation, states Lawyers.com. It differs from a prenuptial primarily in that the parties sign a prenuptial prior to the legal union.

The postnuptial agreement is an option for married individuals looking to protect assets when they have not signed a prenuptial agreement, advises a 2001 newsletter for the American Bar Association. The document typically contains information regarding the current assets and debts of both parties, including future earning potentials and other contributions to the household. A postnuptial is not an ideal substitute for a prenuptial, in part because the courts view the former with greater skepticism. Postnuptials may be desirable to reflect changes in the dynamic of the relationship, such as one partner desiring to exit the workforce, notes ABC News.