Understanding Post-Marital Agreements in Oregon: What You Need to Know

Understanding post-marital agreements in Oregon can be overwhelming. You may be thinking, “What is a post-marital agreement and what are the reasons for a post-marital agreement in Oregon?” 

A post-marital agreement, sometimes referred to as a post-nuptial agreement, is a legal contract a couple enters into after they’re already married. 

Think of a post-marital agreement as a pre-nup for a married couple.

Just like a pre-nup, a post-marital agreement outlines how assets and debts will be divided in the event of a divorce and it typically addresses spousal support, too. Many couples also use the post-marital agreement process as a way to clarify expectations and responsibilities within the marriage.

You might be wondering, “Do I really need a post-marital agreement in Oregon?” Here are some compelling reasons to consider:

The most common reasons why a couple gets a post-marital agreement is because a couple wants to stay married (or at least try to stay married), and a spouse has either had an affair, has racked-up significant debt (usually for nefarious purposes), has a acquired a financially significant asset (i.e. new business or inheritance), or a spouse has become unpredictable. Using a post-marital agreement allows the reason to be addressed and gives the marriage the space it needs to heal. 

In short, post-marital agreements help couples stay married by working-out the icky stuff and putting that ick into a contract so that neither party can back-out of the agreement.

The last thing a couple wants is to go through the pits of hell to save their marriage, make verbal agreements, trust those verbal agreements, and then get served with a divorce papers with the other party saying, “we never made that agreement,” and you have NOTHING to prove it.

So, if your marriage has hit a brick wall and your goal is to save your marriage, then you may need to do the hard work of entering into a post-marital agreement, which allows the icky stuff to be said, agreements can be made in writing, and then the marriage can move forward on newly negotiated terms.

1. Asset Protection: If you or your spouse has an asset that one spouse has significantly more assets or income, a post-marital agreement can ensure that these are protected.
2. Debt Management: A post-marital agreement can help define who is responsible for debts incurred during the marriage, protecting each spouse from the other’s financial missteps.
3. Estate Planning: These agreements can play a vital role in outlining inheritance issues and ensuring that your wishes are honored.
4. Spousal Support: A post-marital agreement can address if spousal support is paid or not paid.

In Oregon, the law regarding post-marital agreements is governed by the Uniform Premarital Agreement Act (UPAA), which extends to post-marital agreements as well. ORS 108.700. To ensure that your post-marital agreement stands up in court, it must meet certain requirements:

Written Agreement: Of course, your post-marital agreement must be in writing. Oral agreements won’t cut it—sorry, folks.

Voluntary Execution: Both parties must enter into the agreement voluntarily. Coercion or pressure can lead to it being deemed invalid.

Full Disclosure: Both spouses need to fully disclose their financial situations. Hiding assets? Not a great strategy for a solid agreement.

Fair and Reasonable: The agreement should be fair and not overly one-sided at the time of signing. A lopsided deal could be thrown out by a judge faster than you can say “irreconcilable differences.”

In Oregon, post-marital agreements are generally enforceable, but several factors can affect their enforceability:

Unforeseen Change in Circumstances: If there are significant changes in circumstances (like a major increase in income), a court may reconsider the terms of the agreement.

Unconscionability: If the agreement is found to be grossly unfair at the time of enforcement, a court might throw it out. So, be cautious about drafting overly harsh terms.

If your marriage has crashed into a tree and you realize that you need a post-marital agreement to give you the space to save your marriage, who do you turn to?

If you each hire your own attorney, it will cost you several vacations, it will turn-up the heat in your marriage, and it may not survive. If you both hire one attorney-mediator to mediate the post-marital agreement, then it will cost you one vacation and the mediation process is designed to reduce the animosity while working through the problem. 

Myth 1: They’re Only for the Wealthy

Not true! Post-marital agreements can benefit couples of all financial backgrounds. Whether you have significant assets or just want to clarify debt responsibilities, a post-marital agreement can be a wise choice. Frankly, a post-marital agreement is FAR less expensive than a divorce.

Myth 2: They’ll Jinx Your Marriage

The belief that having a post-marital agreement dooms your relationship is simply not backed by evidence. In fact, many couples find that discussing financial matters openly strengthens their bond.

Myth 3: They’re Only for Couples on the Brink of Divorce

While it’s true that many couples pursue post-marital agreements during tough times, they can also be a proactive step for any couple looking to solidify their financial future.

Let’s get real for a moment. If you and your spouse don’t have a post-marital agreement in place and you find yourselves facing a divorce, things can get complicated—fast. Here’s what you might be looking at:

1. State Laws Govern: Without an agreement, your divorce will be governed by Oregon’s divorce laws, which can lead to outcomes that may not align with either party’s wishes.
2. Asset Division: The court will make decisions regarding asset division based on state laws, which may not be as favorable as a custom agreement.
3. Time and Cost: Divorce proceedings can become lengthy and expensive when there’s no agreement, leading to prolonged stress for both parties.

Click here to learn more about mediating a Post-Marital Agreement through Mediation Northwest.