An Alabama postnuptial agreement is a legal document designed for couples who are already married but wish to establish terms regarding the division of assets and financial responsibilities in the event of a divorce or separation.
Similar to prenuptial agreements, which are created before marriage, postnuptial agreements allow spouses to outline how assets, debts, and other financial matters will be handled should their marriage end.
Legal Considerations
Code of Alabama Title 30 governs aspects of marital and domestic relations, including postnuptial agreements.
- Signing Requirements: Must be signed by both spouses. While not mandatory, it is highly recommended to have it executed in the presence of a notary public (Barnhill v. Barnhill (1980)).
- Dividing Property: Equitable division (Ala. Code § 30-2-51).
Asset and Property Rights
Wife’s Separate Property
- Any property owned by the wife before marriage or acquired afterward, regardless of the means of acquisition, remains her separate property. [1]
- This property is not liable for any debts or obligations of the husband.
Capacity to Contract
- The wife has complete legal authority to enter into contracts as an individual, except where restricted explicitly by law. [2]
- The husband holds no responsibility for any debts or obligations incurred by the wife after their marriage nor for any wrongful acts committed by her in which he does not participate. The wife remains fully liable and can be sued as if she were solely responsible. [3]
- Spouses can enter into contracts with each other, but those are subject to legal rules regarding agreements made between individuals in a confidential relationship. [4]
- The party seeking to uphold the agreement must show that there was adequate consideration, indicating that both parties exchanged something of value for the benefits outlined in the agreement.
- Additionally, this party must also prove that the transaction was fair or that both spouses had independent advice and knew each other’s assets and their worth.
Business and Earnings
- The income earned by the wife constitutes her individual property. [5]
- However, she is not entitled to reimbursement for any services provided to her husband or family.
Estate Planning and Inheritance
Inheritance Rights
- Any property acquired by the wife through inheritance, gifts, contracts, or conveyances, including those from the husband, is considered her individual property. [6]
- However, it excludes property conveyed to an active trustee for her benefit from this designation.