Post-Nuptial Agreements in the UK: Protecting Your Assets and Future
Sometimes life doesn’t work out the way you planned it. Occasionally it can be even better! Life can bring beautiful surprises such as a chance at love again, a marriage later in life or new relationships with step-children.
Getting married when you've already built a career, or when you’ve already accumulated assets or raised children from a previous relationship can bring up important financial considerations. Additionally, if you’re marrying after the death of a partner, a post-nuptial agreement can help preserve the intentions of your late spouse while also securing fairness in your new marriage.
Enter the post-nuptial agreement—a legal document that offers a way to protect both your assets and future, no matter what life throws at you.
What is a Post-Nuptial Agreement and why enter into one?
We may have all heard of a pre-nuptial agreement, but did you know that a post-nuptial agreement has the same legal weight and can be entered into at any time during a marriage?
A post-nuptial agreement in the UK is an agreement made after the wedding that outlines how assets will be divided in the event of a separation or divorce. For individuals who have substantial assets or who may be entering a second marriage, a post-nuptial agreement can clarify ownership and protect those assets. This can be particularly important if you have children from a previous relationship that you want to ensure are financially protected.
The landmark case of Radmacher v Granatino (2010) is significant when discussing post-nuptial agreements. In this case, the UK Supreme Court ruled in favour of enforcing a prenuptial agreement, setting a precedent for post-nuptial agreements as well. The case involved the wife, who had a substantial wealth, entering into a pre-nuptial agreement with her husband, which the court eventually upheld, despite the husband's later claims. This case demonstrated that the courts are likely to give weight to such agreements, provided both parties entered into them voluntarily and with full knowledge.
Like life insurance, we always hope that we will never need to use a post-nuptial agreement, but the existence of one can provide married couples with clarity, transparency and certainty – allowing peace of mind for future planning and a strong foundation for your married life.
Is a Post-Nuptial Agreement always “water-tight”?
Pre and post-nuptial agreements are not legally binding in England and Wales. This means that by entering into a post-nuptial agreement, you cannot override the court's ability to decide how your finances should be divided on a divorce. However, when considering an application for financial remedy, the court must give appropriate weight to a post-nuptial agreement as a relevant circumstance of the case.
It is therefore essential that if you are considering entering into a post-nuptial agreement that you seek the advice of an experienced solicitor who can ensure the agreement is drafted giving due consideration to the legal principles which will give you the best chance of the agreement being upheld by the court.
If you would like any advice about post-nuptial agreements, please contact Giles Wilson today on 01702 477106 or email [email protected] to arrange an appointment with one of our legal experts.
