The Career Sacrifice Agreement for the Spouse Who Steps Away

In an article published on October 29 in Law.com, Family Law Attorney Rebecca L. Palmer explores how a prenuptial or postnuptial agreement can address the financial effects of a spouse stepping away from a career to care for children or aging parents for any extended period of time. The article helps couples consider lost income, retirement savings, professional advancement, and future earning capacity before those issues become a source of uncertainty.

“The purpose is not to put a price on parenting,” Palmer explains. “It is to acknowledge that a family decision can create an economic cost for one spouse and decide, in advance, how those costs will be handled and by whom.”

A career-sacrifice provision can account for reduced work hours, relocation, a missed promotion, a career change, or a longer absence from the workforce. Depending on the couple’s circumstances and applicable state law, an agreement may address property, retirement or investment contributions, spousal support, or the division of marital assets.

“A postnup does not necessarily mean a marriage is in trouble,” writes Palmer. “It simply means the assumptions made years earlier no longer describe the family the couple has built.”

Read the story in full; click here (subscriber-based).