A postnuptial agreement, commonly called a postnup, is a legal agreement made between a married couple. It will usually set out how financial matters will be dealt with between them, including in the event they separate.
Putting this type of agreement in place can be beneficial in several ways. It can help you to talk openly about difficult issues and resolve concerns that either of you may have. It can give you financial reassurance for the future and ensure that both you and your spouse have peace of mind. It may also prevent disputes and misunderstandings from arising over time and they are growing in popularity.
At Witan Solicitors, we work with couples who are married or in civil partnerships to put comprehensive postnuptial agreements in place, dealing with a range of financial issues. We can help you to put a postnup in place to safeguard your position and ensure that you have the resources you may need in the future.
What are Postnuptial Agreements?
A postnuptial agreement or postnup is an agreement between a couple setting out how their assets, liabilities and financial affairs will be dealt with in the future. It can deal with property owned by either party before the marriage, what will happen to inherited money and financial provision for children and the person caring for them.
How Does a Postnup Work?
A postnup is put into place after a marriage or civil partnership. The parties can discuss how they want matters to be dealt with and an experienced postnuptial agreement solicitor will put this into a draft document.
Before the agreement is prepared, both of you will need to make full financial disclosure to each other, listing all of your assets and liabilities.
We can work with you to suggest the sort of clauses you might want to include and discuss how to safeguard your position and ensure you both have the support you need for the future.
Once the document has been drafted, both parties will need to take independent legal advice before signing.
Should you separate in the future, the court will usually follow the terms of a postnup in making a financial order, provided certain criteria were met when the document was drafted and executed.
Postnup or Prenup?
If you are not yet married, you can consider putting a prenup in place. This is a similar document but will be signed at least a month before the wedding.
If you are already married, then a postnup is a very similar document which will have the same effect.
What’s Included in a Postnup?
We will tailor your postnup to suit your unique situation, ensuring that all major matrimonial and non-matrimonial assets and liabilities are adequately dealt with. Clauses frequently used in a postnup include:
- How your shared home will be dealt with
- What will happen to any other property that either of you owns
- How an inheritance will be dealt with
- How jointly owned assets will be split
- How future earnings will be dealt with
- How pension provision will be dealt with
- Who will be responsible for debts
- Arrangements for children, including financial contributions
What’s Not Covered?
In dealing with issues in the future, the courts will always prioritise the interests of any children. This means that a postnup cannot eliminate a parent’s responsibility to provide for their child.
Other issues that should not be included in a postnup include:
- Child custody issues
- Some fundamental child arrangement issues, including education and religion
- Anything illegal or unfair
- Lifestyle or personal matters
Is a Postnup Legally Binding?
While a postnup is not legally binding, if it is correctly dealt with, then the courts tend to follow its provisions when making a financial order.
The legal requirements include:
- The document is correctly drafted and executed
- Neither party was exposed to undue influence when signing
- The terms are fair and the adequate needs of each party are met
- There has not been any misrepresentation by either party
- Both parties fully disclosed their financial situation
- Both parties received independent legal advice before signing
- The agreement does not prejudice the interests of any children
- The agreement was made more than 28 days before the marriage or civil partnership took place
5 Reasons to Get a Postnup
Postnups have a range of benefits, including the following:
1. Peace of Mind
A postnup gives both parties the peace of mind of knowing what financial resources they will have, should their relationship ever come to an end. This can be particularly important if one of them is giving up their career to care for children, which could put them in a financially weaker position.
Similarly, if one party were to inherit a substantial sum, they could ensure that this remains available to them in the future in the way that the person leaving it to them would have wanted.
2. Openness
In making a postnup agreement, both parties must fully disclose their financial situation to each other, including all assets and liabilities. This can help them be open with each other and allow them to discuss their current situation and how they would like matters dealt with in the future. While conversations might be difficult, having them now can help avoid uncertainty and worry later on.
3. Reduce the Risk of Conflict
A postnup agreement ensures both parties know where they stand. This reduces the risk of conflict and misunderstandings. If someone has signed a document agreeing to a certain division of assets, there is less scope for arguments.
4. An Easier Divorce
Should the relationship end, having a postnup in place can make a divorce faster and less acrimonious. It may be possible to deal with matters on a consent basis, avoiding litigation altogether. Even if your case needs to go to court, the judge can choose to follow the terms of the postnup, making the process quicker and easier.
5. Protecting your Position
Suppose you and your spouse are not in similar financial positions, for example. In that case, if one of you is in a weaker position or one of you has substantially more assets than the other, a postnup offers a level of protection. You may be happier to give up your career if you have the reassurance of knowing that you will be able to keep certain assets were you to divorce. Similarly, if you have inherited a large sum of money, you can take steps to safeguard this where possible.
Contact Our Postnup Solicitors
Our family law team can draft a postnup reflecting your wishes or provide independent advice if you have been asked to sign a postnup. We have wide experience in dealing with postnups, including in complex and high-value cases, and will give you the advice you need to protect your position in the future.
If you would like to speak to one of our expert postnup lawyers, email us at info@witansolicitors.co.uk or fill in our contact form and we will talk through your situation with you and discuss how we can help.
FAQ
Do I need a postnup?
While a postnup is not essential, it offers a wide range of benefits and can help a couple deal effectively with their finances as well as avoid disagreements.
It can be particularly beneficial if one or both parties have children from a previous relationship, as it allows them to safeguard assets for their family.
How much does a postnup cost?
The cost of a postnup will depend on the complexity of your financial situation, but it is generally not an expensive document. In the long run, it could save you many thousands of pounds if you were to divorce, by avoiding the need for a protracted legal dispute over finances.
What is the difference between a pre-nup and a postnup?
A prenup is made before a marriage. A postnup is made after marriage and is often used when a couple’s circumstances change. For example, it is very useful to put a postnup in place when starting a family or if one party receives an inheritance that they want to protect.
Is a postnup worth it?
Couples usually find postnups very beneficial. As well as helping them discuss matters openly and honestly, they provide reassurance for the future.
Do I need a postnup if I already have a prenup?
If you have a prenup and your situation changes, you and your spouse might want to make changes. This is done by making a postnup. You would both need to agree on the alterations.
Can postnups be amended?
A postnup cannot be amended, but if you are both agreeable, you can make a new postnup to reflect any changes in circumstances.
