You can change a Prenuptial Agreement after the date of the marriage or legal civil ceremony. However, to do this, you need to create a new agreement called a Postnuptial Agreement.
The terms of the original Prenuptial Agreement will usually address when the agreement should be reviewed. It’s important to know when to review a prenuptial agreement and the existing agreement would usually provide for that but the original agreement can be varied at any point after it is signed and executed; so long as both parties agree.
What is a Postnuptial Agreement?
A Postnuptial Agreement, also known as a postnup, is a legally binding contract signed after the wedding or civil partnership takes place. It explains how to divide assets and responsibilities in the event of a divorce and separation.
It ensures both spouses understand their responsibilities towards each other and sets out very clearly what would happen in the event of separation and divorce. A postnup is essentially the same as a prenup but is signed after the marriage or legal ceremony.
Why Consider a Postnuptial Agreement?
Life changes, and so should your financial arrangements. Here are some scenarios where a postnuptial agreement might be necessary:
- Significant Changes in Financial Circumstances: If one spouse experiences a substantial income boost, inherits assets, or starts a successful business, these shifts can make the original prenup outdated. Financial setbacks, such as losing a job or having debts, may lead to a review of asset division in a divorce.
- Starting a Family: The birth of children introduces new financial responsibilities, making it crucial to reassess financial arrangements. Protecting their future well-being may require adjustments, especially concerning child support.
- Career Changes: If one partner sacrifices their career to support the family or facilitate the other’s professional success, it alters the financial balance. A postnuptial agreement can provide clarity on spousal support and future financial security.
- Asset Acquisitions or International Moves: Acquiring significant assets or relocating abroad can impact how your finances are managed and divided, making a review necessary.
It is important to review the terms of your prenuptial agreement periodically. The original agreement usually lists events that start this review. Our expert family lawyers can give expert legal advice on any needed changes.
Case Law: The Importance of Fairness and Transparency
The enforceability of prenuptial and postnuptial agreements in England & Wales depends on several important factors. These factors have been shaped by case law over the years.
The important case Radmacher v Granatino (2010) showed that courts should honour agreements made freely. Both parties must get their own legal advice and fully understand what the agreement means. Independent legal advice is necessary and the agreements must not unfairly harm either party. The agreements must meet the needs of the parties.
Additionally, the case of MN v AN (2023) emphasised the importance of ensuring agreements are free from coercion and duress. Courts will closely examine whether someone signed the agreement voluntarily. Therefore, transparency, fairness, and full financial disclosure are crucial to ensure the agreement is legally binding. Again, the agreements must meet the parties` needs.
Requirements for a Legally Binding Postnuptial Agreement
The agreements must meet the following conditions for the Courts to uphold the agreements :
- Voluntary Agreement: Both parties must sign the agreement willingly, without any pressure or coercion.
- Full Financial Disclosure: Each spouse must disclose their full financial circumstances, including assets, debts, and income, to ensure fairness.
- Independent Legal Advice: Both parties must seek independent legal advice to understand the terms and implications. Courts are less likely to enforce agreements made without obtaining independent legal advice.
- Fairness: The terms must be fair and should not leave one party in a financially vulnerable position. If there are children, the agreement must consider their welfare, including provisions for child support.
- Formal Execution: The agreement should be signed as a formal contract. It is best to draft it well before major life events, like a planned divorce or separation.
How Laker Legal Solicitors Can Help
At Laker Legal Solicitors, our team offers a fixed-fee postnuptial agreement service starting from just £1,750 plus VAT. We understand that discussions about finances can be difficult, but our goal is to make the process as seamless and stress-free as possible.
Our Comprehensive Fixed-Fee Service Includes:
- Personalised Consultation: We’ll assess your unique situation, discuss your needs, and offer tailored family law advice.
- Drafting Your Postnuptial Agreement: We’ll create a robust and legally enforceable agreement, covering all necessary elements to protect your financial situation.
- Review and Negotiation: If needed, we’ll negotiate terms with your spouse’s solicitor to ensure both parties are satisfied.
- Independent Legal Advice: We’ll guide you through the process of obtaining independent legal advice to uphold the enforceability of the agreement.
