How To Get A Post Nuptial Agreement

Marriage is a wonderful journey, but even the strongest relationships can encounter unexpected bumps.

While prenuptial agreements (prenups) are a common tool for couples planning their future, life sometimes throws curveballs, and the need for financial clarity might arise after marriage.

This is where postnuptial agreements (postnups) come in – an agreement entered into after a couple is married to address how assets and finances will be divided in the event of a divorce.

Why Consider a Postnuptial Agreement?

There are several reasons why couples might choose to create a postnuptial agreement:

Change in Financial Circumstances: Perhaps one spouse has inherited significant wealth, started a successful business, or experienced a financial windfall after marriage. A postnup can ensure this new wealth is treated fairly in a potential divorce.
Shifting Financial Goals: Financial priorities can evolve over time. A postnup can establish how future income and assets will be managed, especially if one spouse becomes a stay-at-at-home parent or significantly reduces their income to focus on childcare.
Blended Families: When two families come together, a postnup can safeguard assets intended for children from previous relationships. It can also clarify inheritance plans and reduce potential conflict down the line.
Debt Management: If one partner accumulates significant debt after marriage, a postnup can shield the other spouse’s assets from liability in case of divorce.
Protecting Business Ownership: If a business is established after marriage, a postnup can specify ownership rights and limit the other spouse’s claims on the business in a divorce.

What Can a Postnuptial Agreement Cover?

Similar to a prenup, a postnuptial agreement can address various aspects of a couple’s finances in the event of a divorce:

Division of Assets and Debts: The agreement can detail how existing property (houses, cars) and future acquisitions will be divided. It can also specify how premarital and post-marital debts will be handled.
Spousal Support: The postnup can determine if, and how much, spousal maintenance will be paid after a divorce.
Inheritance: The agreement can clarify how inheritances received during the marriage will be treated in a divorce.
Children: The agreement can also clarify how the children’s needs will be met following a divorce, and could cover issues such as who will cover school fees or costs of any tertiary education/further training after school.

Key Considerations for Postnuptial Agreements:

Full Financial Disclosure: Both partners have a legal obligation to disclose all their financial assets and liabilities completely and transparently before signing the agreement.
Fairness: The terms of the postnup must be fair to both parties. Courts can overturn agreements deemed unfair or one-sided.
Independent Legal Advice: Seeking independent legal advice from separate solicitors is crucial. This ensures both partners understand the agreement’s implications and their rights.
Full Disclosure of the Agreement: The postnup must be disclosed during any future divorce proceedings.

The Steps to Getting a Postnuptial Agreement:

Initiate the Conversation: Discuss the need for a postnup openly and honestly with your spouse. Explain your reasons and address any concerns they might have.
Full Financial Disclosure: Gather all financial documents like bank statements, investment records, property deeds, and existing wills. Ensure complete transparency with your spouse.
Seek Independent Legal Advice: Contact separate solicitors specialising in family law. They will guide you through the process, explain legal implications, and draft the agreement according to your specific circumstances.
Negotiation and Agreement: Your solicitors will facilitate discussions to reach a fair agreement.
Formalisation: Once both parties are satisfied with the terms, the agreement will be formally drafted by your respective solicitors.
Signing and Witnessing: The postnup must be signed by both parties in the presence of a witness who is not a beneficiary of the agreement.

The Benefits of Postnuptial Agreements

While not always as common as prenuptial agreements, postnups can offer several benefits for married couples:

Financial Clarity: A postnup clearly outlines how finances will be handled in a potential divorce, providing peace of mind for both partners.
Reduced Conflict: By addressing financial concerns upfront, a postnup can minimise emotional strain and conflict if the marriage dissolves.
Fairness and Security: A well-drafted postnup ensures a fair and predictable outcome in the event of divorce, protecting each spouse’s financial security.
Open Communication: The process of creating a postnup often leads to open and honest conversations about finances, strengthening the couple’s communication.

Safeguarding Your Future with a Postnuptial Agreement

While postnuptial agreements might not be the most romantic topic, they can be a valuable tool for safeguarding your financial future and your relationship, in the same way that a Will might be.

By openly discussing your finances, establishing clear expectations, and seeking professional guidance, a postnup can provide peace of mind and minimise conflict if your circumstances change.

Remember, a postnup is a sign of responsible planning, not a reflection on the health of your marriage.

With open communication and legal expertise, you can navigate your future together with confidence and clarity.