New moms leaving their jobs should consider divorce implications
Most people have heard of prenuptial agreements. These documents allow a couple that's about to be married to decide how marital property will be divided if they ever get a divorce. However, many people might not be aware that a similar agreement exists for couples who are already married. Known as a "postnuptial agreement," this document allows married couples to discuss how their assets will be divided if they ever split up. These types of agreements are useful for when the couple undergoes major life changes that have far-reaching financial implications. One of the biggest reasons to get a postnup involves leaving the workforce to take care of a new baby.
Moms that put a potentially lucrative career on hold in order to care for a child are making a decision that will have a huge impact on her and her husband's financial situation. Even though more and more fathers in the U.S. are staying home with the kids, women are still generally more likely to feel pressured into making this decision. However, it must be taken into consideration that a woman who gives up a job to raise a family will be missing out on a large amount of money that could have been earned by staying in the workforce. Also, a woman that has left a job for several years may have a difficult time finding new employment when the kids are old enough to take care of themselves.
This is why stay-at-home moms might be facing an unfair financial situation after a divorce. It's likely, however, that a newly married or otherwise happy couple in Maryland would not want to think about a potential breakup and the subsequent asset division. The reality, though, is that around half of the marriages in the U.S. end in divorce. It can be argued that getting a postnup may also strengthen a relationship by establishing clear financial parameters that can curb future arguments about money - arguments that happen to be one of the most common causes of divorce.
Source: forbes.com, "Why You Need A Postnup And Other Points To Consider Before Leaving Your Paid Job To Be A Stay-At-Home Mom" Jeff Landers, Jan. 22, 2014