What is a postnuptial agreement?
A postnuptial agreement, also known as a ‘postnup’ is the term given to a legally prepared document that couples both willingly enter into after their marriage.
Similar to a pre-nuptial agreement, a postnuptial agreement outlines how financial assets will be divided in the event of a separation or divorce, but it is agreed after you and your partner marry.
Who are postnuptial agreements suitable for?
They are increasingly popular and are favoured by business owners, those with landed estates, high profile individuals or those with inheritance and other large lump sums such as compensation holders.
Are postnuptial agreements legally binding?
Whilst postnuptial agreements are not currently legally binding in the UK, the courts will give significant weight to them during divorce proceedings. The primary concern of the court will always be fairness and the adequate provision for any children involved. However, a well-drafted postnuptial agreement can serve as a strong indication of how both parties intended to divide their assets.
To maximise the enforceability of a postnuptial agreement, it is crucial that it is prepared by a specialist family solicitor. Both parties must willingly enter into the agreement, having fully disclosed their financial positions.
Why couples decide to write a postnuptial agreement?
Weddings and the lead-up to marriage can be hectic, with family dynamics and numerous other factors at play. You may have always intended to create an agreement, but for various reasons, it wasn’t finalised before the wedding.
- Couples may also wish to reduce uncertainty and prevent disputes over assets and finances.
- A postnuptial agreement also allows you to safeguard a business, family farm or landed estate that may have been passed down through generations of your family.
- Some couples wish to have an agreement in place to protect assets, inheritance or large lump sums such as compensation awards that they have received or are hoping to receive in the future.
- If one or both of the married couple have children from a previous relationship, a postnuptial agreement will enable you both to agree how assets should be preserved for these children, as well as any new children, and ensures that inheritance is distributed according to your wishes.
- A postnuptial agreement also enables couples to gain greater control over their financial future and shields both parties from liability for the other party’s debts.
How we will work with you and your partner?
Drafting a postnuptial agreement requires our team of family solicitors to understand your current situation and your goals for safeguarding your assets in the event of a relationship breakdown. We’ll work closely with you and your partner to create a bespoke agreement that provides the highest level of clarity and protection.
We will guide you through important considerations, including: as:
- How will your property be divided?
- What will happen to joint and individual bank accounts?
- How will shares and all other valuable assets be distributed?
- Which assets are owned jointly and which are owned individually?
- Will one party pay maintenance and if so, how much and for how long?
We recognise that this is a highly personal and sensitive and process. Our team will present your options in plain, straightforward language, giving you and your partner time to discuss and ask any questions. Our advice is clear and practical, ensuring the final agreement reflects your intentions and helps prevent disputes .
Why should I consider a postnuptial agreement?
As life progresses, both your relationship and financial circumstances can change significantly from when you first married. A postnuptial agreement can confirm your intentions and help protect your assets as these changes occur.
For example:
- You may not have owned a sole business interest before marriage, but now that business has grown considerably.
- You may have been promised an inheritance that you were unaware of at the time of your marriage.
You and your spouse may agree that, in the event of a separation, any inheritance or business interests should remain separate property. A postnuptial agreement can provide reassurance, protecting both you and your partner by ensuring your financial future is secure in case of a relationship breakdown.
