A Postnuptial Agreement is an agreement entered into by a couple after a marriage or civil partnership has taken place. It allows them to record how assets, property and finances should be dealt with in the event of a future separation or divorce, reducing the potential for disputes later on.
Common scenarios include protecting inherited wealth, safeguarding business interests, reflecting a significant change in financial circumstances, or updating an outdated pre-nuptial agreement. In order for a postnuptial agreement to be relied upon if a future divorce or separation occurs, it must be carefully drafted, supported by financial disclosure and entered into freely by both parties. Obtaining specialist legal advice from a family solicitor is therefore essential.
Led by Sobiah Hussain, Head of Private Family Law, our postnuptial agreement solicitors advise individuals and couples who want greater certainty about their financial position in the event of a future separation or divorce.
What Can Be Included in a Postnuptial Agreement?
A postnuptial agreement can address a wide range of financial issues, including:
- Inherited assets and future inheritances
- Property and the family home
- Business interests
- Savings and investments
- Pensions
- Financial support following separation
How Our Postnuptial Agreement Solicitors Can Help
Every postnuptial agreement should be tailored to the specific circumstances of the couple involved. Whilst some clients have already agreed the terms they wish to include, others require advice regarding the options available and the potential implications of different arrangements.
We can advise throughout the process, assist with negotiations where required, prepare the agreement and ensure that the necessary legal safeguards are followed. We can also advise on the financial disclosure required and work alongside your spouse’s solicitor.
Most postnuptial agreements can be completed within a few months, depending on the complexity of the finances involved and how quickly both parties are able to engage with the process.
Sobiah Hussain
Partner, Solicitor-Advocate, Collaborative Law Practitioner & Head of Private Family Law
Meet the teamPost Nuptial Agreements - Key Information
Post-nuptial agreements are not automatically binding in England and Wales – the court retains the power to overrule the agreement in some circumstances.
However, the Supreme Court confirmed in Radmacher v Granatino that a nuptial agreement is most likely to be upheld where both parties entered into it “of their own free will, without undue influence or pressure, and informed of its implications”.
The court is likely to give significant weight to an agreement where:
- Both parties entered into it freely, without pressure or undue influence
- Each party received independent legal advice
- Full and frank financial disclosure was provided by both parties
- The agreement does not leave either party, or any children, without their reasonable needs being met
If these safeguards are not met the court may attach less weight to it, or depart from it entirely.
The court is generally less likely to interfere with an agreement concerning the division of assets, and more likely to intervene to ensure that the reasonable financial needs of either party, or any children, are properly met.
No solicitor can guarantee that a post-nuptial agreement will be upheld in every circumstance. However, careful drafting and compliance with these safeguards can significantly increase the likelihood of the agreement being respected by the court if it is ever relied upon.
Independent legal advice is one of the most important safeguards when preparing a post nuptial agreement. It helps demonstrate that both parties understood the terms of the agreement and entered into it freely.
In most cases, each party should have their own solicitor. This allows both individuals to receive advice tailored to their own circumstances and helps reduce the risk of future arguments that the agreement was not properly understood or that undue pressure was applied.
Obtaining independent legal advice can therefore play an important role in maximising the weight a court may give to the agreement in the future.
Financial disclosure is usually a crucial part of the post nuptial agreement process. Before entering into the agreement, both parties should have a clear understanding of the other person’s financial position.
This will often involve providing information regarding assets, liabilities, income, savings, investments, pensions and business interests. Without adequate disclosure, there is a risk that the agreement may be challenged later on.
We can advise on the level of disclosure required and help ensure that the process is completed properly, reducing the risk of disputes in the future.
Where one or both parties own a business, a post nuptial agreement can provide important protection and certainty. Business interests can often become one of the most valuable assets within a marriage and may be difficult to divide in the event of a separation.
A post nuptial agreement can help clarify how business interests should be treated and may assist in protecting the long-term stability of the business. This can be particularly important where other family members, shareholders or employees are also affected by the success of the business.
Inheritance is one of the most common reasons couples enter into post nuptial agreements. A person may have received an inheritance during the marriage, expect to receive one in the future, or wish to protect assets that have remained within their family for generations.
A carefully drafted post nuptial agreement can help clarify how inherited assets should be treated if the relationship later breaks down. Whilst each case will depend on its own facts, obtaining advice at an early stage can help reduce uncertainty and minimise the risk of future disputes.
Whilst post nuptial agreements are often given significant weight by the courts, there are circumstances in which one party may seek to challenge the agreement following a separation or divorce.
Arguments can arise where it is alleged that important financial information was not disclosed, that one party did not properly understand the agreement, or that unfair pressure was applied during the process. In some cases, a party may also argue that the agreement no longer produces a fair outcome because circumstances have changed significantly since it was signed.
For this reason, careful preparation at the outset is essential. A properly drafted agreement, supported by appropriate disclosure and independent legal advice, is generally less vulnerable to challenge in the future.
Meet the Private Family Law Team
Sobiah Hussain
Partner, Solicitor-Advocate, Collaborative Law Practitioner & Head of Private Family Law
Irrum Shah
Senior Associate Solicitor
Alison Page
Senior Associate Solicitor
Emma Macdonald
Chartered Legal Executive
Frequently Asked Questions
A postnuptial agreement is an agreement made by a couple after they are married or enter into a civil partnership. It records how they intend assets, property and finances to be dealt with in the event of a future separation or divorce.
A postnuptial agreement can cover matters such as property, savings, pensions, inheritance and business interests. It can also be used to reflect changes in a couple’s financial position that have taken place since they married.
There are many reasons why a couple may decide to create a postnuptial agreement. For example, their financial circumstances may have changed significantly since the marriage or civil partnership began.
A postnuptial agreement may be considered where:
- one person has received or expects to receive an inheritance;
- one or both parties have significant business interests;
- there has been a substantial change in wealth or income;
- one person has children from a previous relationship;
- the couple wants greater certainty about how assets would be dealt with on separation or divorce; or
- an existing prenuptial agreement needs to be reviewed or updated.
Postnuptial agreements are not automatically legally binding in England and Wales. The Family Court retains the power to decide how finances should be dealt with following divorce.
However, a properly prepared postnuptial agreement can be given significant weight by the court. Important factors include whether both parties entered into the agreement freely, fully understood its implications, provided appropriate financial disclosure and received independent legal advice before signing.
The agreement should also make appropriate provision for each person’s reasonable needs and the needs of any children.
Both parties should obtain independent legal advice before signing a postnuptial agreement. This means each person has their own solicitor who can explain how the proposed agreement affects their individual financial position and legal rights.
Independent advice helps demonstrate that each person fully understands the agreement and has entered into it freely. This can be important if the agreement is later considered by the court following separation or divorce.
The main difference is when the agreement is made. A prenuptial agreement is entered into before a marriage or civil partnership, whereas a postnuptial agreement is entered into after the marriage or civil partnership has taken place.
Both prenuptial and postnuptial agreements can record how the couple intends property, finances and other assets to be dealt with if they later separate or divorce.
A postnuptial agreement can also be useful where circumstances have changed since a prenuptial agreement was prepared.
Not always. However, there may be circumstances where it is sensible to review a prenuptial agreement after the marriage has taken place.
For example, your financial position may have changed, you may have received an inheritance, started a business or had children. A postnuptial agreement can potentially update or reaffirm arrangements made before the marriage so that they better reflect your current circumstances.
Our family law solicitors can review an existing prenuptial agreement and advise whether a new postnuptial agreement should be considered.
A postnuptial agreement can record how the couple intends business interests to be treated if they later separate or divorce.
This can be particularly important where a business was established before the marriage, is owned with other shareholders or family members, or has increased significantly in value during the relationship.
The agreement cannot prevent the Family Court from considering the business as part of the overall financial circumstances on divorce, but it can provide clear evidence of what the couple intended.
A postnuptial agreement can record how you and your spouse intend an inheritance to be treated if you later separate or divorce.
This may be particularly relevant where an inheritance has already been received, a significant inheritance is expected in the future or assets have been passed through a family for generations.
Whether inherited assets are ultimately taken into account during divorce will depend on the circumstances, so specialist family law advice should be obtained when the agreement is prepared.
The process usually begins by discussing what you want the agreement to achieve and establishing each person’s financial position.
Both parties should provide appropriate financial disclosure and obtain independent legal advice. The proposed terms can then be negotiated where necessary before the agreement is drafted and reviewed by each party’s solicitor.
Our postnuptial agreement solicitors can guide you through the process, from discussing the terms and financial disclosure to drafting the postnuptial agreement and completing the final document.
You can enter into a postnuptial agreement at any point after your marriage or civil partnership has taken place.
Some couples put an agreement in place shortly after marrying, while others consider one following a significant change in circumstances, such as receiving an inheritance, starting or selling a business, having children or experiencing a substantial change in their financial position.
The cost of a postnuptial agreement will depend on the complexity of your finances, the terms you want to include and whether significant negotiation is required before an agreement can be reached.
Agreements involving businesses, trusts, substantial property portfolios, international assets or other complex financial arrangements are likely to require more work than a straightforward agreement.
Our specialist solicitors can discuss the likely costs once we understand your circumstances and what you want the agreement to achieve.
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