Financial Matters
Postnuptial agreements
Has your marriage changed over the years, perhaps you have inherited money? Would you consider signing a postnuptial agreement?
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Postnuptial agreements are contracts drawn up after marriage. You can use them to set financial terms in the event of any future divorce, dissolution separation or the death of one party.
Postnups give you some control over your assets and a sense of reassurance. Here is what these contracts have to offer.
How Can Austin Kemp’s Divorce Solicitors Help You
We can offer legal advice, and guidance and draft the agreement. Austin Kemp Solicitors provide clarity and certainty of what would happen to your finances after a divorce. We can help you create sufficient strategies to protect your assets if you were to dissolve your marriage
What You Need to Know About Postnuptial Agreements
Marriage is a legal union between two parties. When you enter that partnership, you start sharing assets. In situations where couples stay happily married, sharing assets is not a problem.
But, not all marriages remain intact. Through divorce proceeding, partners will have to divide their assets, including properties, money or other valuables. So, it is not uncommon for both sides to disagree if that situation arises.
Circumstances within a marriage can also change. Couples can open a business, make investments or receive a significant inheritance. If you were to separate in the future you may want certainty as to how those assets will be divided. This is why couples opt for postnuptial agreements.
Contracts such as these can reflect a change in the passage of time. Couples can choose to sign it for a number of reasons. Such as:
- Starting up a business venture
- Assigning business ownership
- Giving birth or adopting a child
- Protecting an inheritance
- Pension distribution
- Insurance coverage
The postnuptial agreement becomes a safeguard for married couples. It outlines what they intend each individual should be entitled to if they separate. Want to know how much you are entitled to? Check out our divorce calculator.
Whilst postnups are a relatively new concept in England and Wales and are not “legally binding,” they can get recognition if they are properly drafted, fair, there has been full and frank financial disclosure, the agreement has been correctly signed, with no undue pressure having been applied to a party. The same principles as apply to prenuptial agreements.
Postnuptial Agreements: The Pros and Cons for Married Couples
Some couples feel reluctant to enter into a postnuptial agreement. To help you make an informed decision, you can weigh out the pros and cons and see whether signing this contract works for you and your marriage.
Pros
- Helps couples assess their finances.
One of the reasons married couples separate is because they have opposing views on money. They can’t compromise on spending, have overextending budgets or have problems with their combined bank accounts. When you write a postnuptial agreement, you openly communicate your financial situation. This gives couples a better outlook on their future and a chance to re-arrange their spending habits. - Relieves anxiety.
If there has been a change in circumstances, such as turbulent periods, brief separation or conflict, a postnuptial agreement can give couples calmness. - Offers reassurance.
If you or your spouse have been married multiple times and have children from other marriages, postnuptial agreements can protect the interest of the children and allocate some of the assets for their well-being. Austin Kemp Solicitors can help you create a document that can benefit the entire family.
Cons
- Taints a marriage.
Signing a postnuptial agreement might feel like you are preparing for divorce. This can put a strain on the relationship. - Unequal bargaining.
If you don’t consult with a solicitor, you may not be able to level the playing field. Spouses who don’t have the right legal knowledge can receive assets of less value, which can affect the validity of the document. - Creates pressure.
Couples often feel pressured to sign, change or remove different provisions from the agreement. This pressure can create stress.
How Postnuptial Agreements Can Protect Your Marriage
A postnuptial agreement is a convenient and proactive step toward avoiding ambiguity in case of separation or divorce. Without this kind of agreement, spouses can face complex financial issues.
These conflicts can be particularly damaging when there is a change in ownership or one of the spouses has amassed considerable wealth. The postnuptial agreement creates an amicable contract that can unite spouses into protecting their assets and maintaining a favourable asset separation (property, business, marital home, etc) after divorce.
The Importance of Fairness When Drafting a Postnuptial Agreement
Detailed postnuptial agreements can avoid the need for the two parties to bicker about who gets more from their assets. It can help you lay out a plan on how to deal with other matters associated with your marriage, like inheritance or child-related issues.
A solicitor is essential in drafting these postnup agreements. That’s because they are not always legally binding and when not drafted correctly, they may be invalid and you can lose the assets you wanted to protect. Austin Kemp Solicitors have the necessary knowledge and skills for writing postnuptial agreements.
We can identify different problems, offer solutions and help you negotiate with your partner on how best to protect these assets. We understand the interplay of relationship dynamics and know how important it is to leave aside emotion and focus on creating a mutually beneficial contract.
Protecting Your Assets with a Postnuptial Agreement
Postnuptial agreements make the divorce process more efficient by saving you money and time.
You can also use the postnuptial agreement to revisit the terms of the prenup. This is a sensible option if you recently had a career change, made some investment or received an unplanned inheritance.
If you need help writing any legal documents, our divorce solicitors at Austin Kemp can help. Contact us today at 0333 311 0925. We are at your disposal.
