Postnuptial agreements

Postnuptial agreements (postnups) like prenuptial agreements (prenups) are contracts made between the two parties within the context of a marriage and are intended to set out the financial consequences of a future divorce, should your marriage ever break down. Having such an agreement in place can minimise conflict should your relationship break down.

Prenups and postnups are becoming increasingly common because in entering into such agreements couples hope that they can avoid the uncertainty, acrimony and cost that can arise during a divorce.

It can be perceived as not being romantic or already setting a marriage up for failure, however, with a high number of marriages sadly ending in divorce and with an increasing number of couples marrying later in life when they have already accumulated wealth, postnuptial agreements can help to identify how the couple both agree to separate their assets to reduce the risk of conflict if the worst happens.

As you are married you should firstly consider what would be a fair outcome at the time you want to enter into the agreement. You may have just got married or you may have been married for a very long time. That passage of time will have had an impact on the financial settlement you would have to provide or would expect to receive. Whatever you consider is fair, you need this to be agreed with your spouse / civil partner. If it is not then it will not be signed and you are putting your marriage / civil partnership in jeopardy. How you communicate your wish to enter into such an agreement also needs to be handled sensitively and with understanding as to what you are trying to achieve and why. Sometimes a postnuptial agreement might be intended to create a more balanced distribution of assets between a couple where before it was under one person’s control. It maybe that something has happened with the marriage which has given one party cause for concern about its future, prompting them to contemplate what might happen if a future divorce were to occur. A postnuptial agreement might be a way of the parties showing greater trust in each other.

A postnuptial agreement can both address the current circumstances of the marriage and also make provision for foreseeable changes in the future such as the addition of children to the family. It can make arrangements for what would happen with a house, other properties, bank accounts and savings, pensions, business interests and also can make provision for income either through maintenance provision or conversely making it clear whether a “clean break” dismissing future maintenance claims is intended.

Once the postnuptial agreement is in place, you can still make changes and updates to the terms depending on your circumstances, but both parties will have to agree each time.