Nuptial agreements are not just for the rich and famous
When people think about marriage they often do so without a thought about practicalities, such as joint bank accounts and previously-owned assets and property. With couples getting married older, many people own property or even have a debt history when they tie the knot. As a result, post-nuptials are on the rise.
A post-nuptial agreement is a written agreement entered into after a marriage, to settle the parties’ financial affairs in the event of a divorce. The agreement also allows new couples to reflect on their financial reality together.
The main point is, whilst the relationship may well be blissful at the outset, no-one knows what will happen or how hostile matters can get between couples when separating. An agreement not only gives peace of mind but will save the misery of a stressful and costly divorce. The agreement may be hypothetical, but it is there to assist in the event a relationship does not work out.
Post-nuptial agreements also protect the party coming into the relationship with the least, as they will know what their entitlement would be in the event of a divorce. For example, if the wife owns property on marriage and the husband does not, the agreement can provide for the husband to share in any increase in the value of the property from marriage. The wife will have protected her initial investment and been fair to her husband. A win-win situation.
It may be an uncomfortable subject, but unless people talk, nothing will change. Think about those that have been through a painful divorce and how different the outcome may have been had they put a written agreement in place.
The post-nuptial agreement may not bind a court but a properly reached agreement will be highly influential. There are guidelines in place to ensure an agreement is drafted properly and gaining legal advice from experts such as our family team can ensure these guidelines are followed.
Contact Kuldeep Chauhan on 0116 257 6150 for advice around nuptial agreements.
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