Getting married or entering into a civil partnership represents a major legal and financial commitment. While many couples take steps to safeguard their financial position in the event of a future separation before tying the knot, it is also possible to revisit these considerations at a later date through a post-nuptial agreement.
Whether you’ve experienced a change in your financial situation or simply didn’t put a pre-nuptial agreement in place beforehand, a post-nuptial agreement can help clarify how your assets would be divided if the relationship were to end. As more people make their financial resilience a priority, post-nuptial agreements are becoming an increasingly popular tool for protecting family wealth.
What is a post-nuptial agreement?
A post-nuptial agreement (or “post-nup”) is a formal written agreement made after a couple is legally married or enters into a civil partnership. Much like a pre-nuptial agreement, it outlines how assets, income, property, pensions, debts and inheritance should be treated in the event of divorce or dissolution.
Though not automatically legally binding in England and Wales, post-nups carry significant weight in the family court if both parties have received independent legal advice, given full financial disclosure, and entered into the agreement without pressure.
When might you need a post-nup?
There are many reasons why couples consider getting a post-nup.
It is recommended that a pre-nuptial agreement is completed at least 28 days before the wedding but this is sometimes missed. A post-nup can be used to reinforce a pre-nuptial agreement, including in these circumstances.
Another common motivator relates primarily to changes in circumstance since entering the marriage. For example, if one spouse or civil partner receives or expects a large inheritance, or a significant business or asset has been newly acquired, this may trigger a couple to make contingency arrangements in place in case of a future separation.
Other reasons include cases where there has been a relationship breakdown followed by reconciliation. Blended families bring their own range of strengths and complications; a new family dynamic might prompt a couple to obtain a post-nup.
“It is wise to plan for your future,” says Elizabeth Taylor, family law specialist at Phillips Law, “just because you did not enter into a pre-nuptial agreement does not stop you thinking about these things now. Whilst you may have no intention of separating, thinking through ‘what-if’ scenarios now could save a significant amount of potential time and cost in the future.”
The role of wealth managers in post-nups
Creating a meaningful post-nuptial agreement involves following a rigorous legal process. However, more than that, it is about financial strategy.
Wealth managers work alongside solicitors to ensure you fully understand the implications of your post-nup and optimise your financial resilience. From evaluating the agreement for pensions, trusts and investment portfolios, to considering estate planning and tax consequences, wealth managers help you build up a comprehensive picture of your financial position – both individually and as a couple.
In this way, we help ensure your post-nup reflects your intentions and supports long-term goals, including wealth preservation for future generations. As well as reducing the emotional and financial cost of future conflict, the transparency that a post-nup brings can help make your financial future clearer and more prosperous.
Take control of your financial future
A post-nup isn’t about preparing for the worst; it’s about creating security and transparency within the relationship.
“Having honest conversations about money is an act of mutual respect,” says Steven Vallery, at S4 Financial. “A post-nup allows couples to formalise those conversations and align their financial outlook, with both legal and financial support.”
Get in touch today
If your circumstances have changed since getting married or you simply want more certainty about future possibilities, a post-nup can offer peace of mind. We’re here to help guide you through the process and protect what matters most.
[Written in joint collaboration with Phillips Law. See their website and LinkedIn to find out more about them.]
The information provided in this article is for general information purposes only and does not constitute financial, legal, or tax advice. You should seek independent legal and financial advice tailored to your personal situation before making any decisions.
Tax and estate planning rules are subject to change and depend on individual circumstances. The value of investments and pensions can fall as well as rise, and you may not get back the amount you invested.
References to third-party firms are for information only and do not constitute an endorsement or recommendation.