For couples who have married or entered a civil partnership, it is always worth discussing a postnuptial agreement. These topics can cause unease and are certainly sensitive, but they can also provide clarity and protection for both parties should the marriage fail. This post will outline the pros and cons so that you can make an informed decision.
Pros of Postnuptial Agreements
Financial Clarity & Security
Postnuptial agreements can provide clarity and security for each person’s assets should the marriage fail. This clarity and security can provide peace of mind and simplify the process of asset division in the event of divorce.
Conflict Reduction
Following on from this, clarity over assets can also help prevent future disputes over finances and reduce uncertainty in case of separation. Divorces often turn nasty when it comes to money, so having an agreement already in place can help keep things civil.
Flexibility
Postnuptial agreements can be tailored to specific needs, and updates can be made as circumstances change, so you have the ability to personalise your agreement.
Protection of Inheritance
Postnuptials can also protect inherited wealth so that it remains with the intended party. This is helpful for individuals with generational wealth or valuable assets who want to protect them in the event of a separation.
Cons of Postnuptial Agreements
Potential for Relationship Strain
There is no getting around the fact that postnuptial agreements create tension and can be seen as a lack of trust. While they can be designed to protect both of your interests, conversations will inevitably be challenging and emotional, which can put a strain on your relationship and could change the dynamic if you have disagreements.
Legal Costs
Drafting and reviewing postnuptial agreements can be expensive.
Enforceability Concerns
It is important to be aware that postnuptial agreements are not legally binding, so they cannot be enforced. They are being taken into account increasingly in recent times, but they must be deemed fair and reasonable.
Unequal Bargaining Power
Postnuptial agreements can also create unequal bargaining power or a feeling of lack of financial security, particularly for the less financially secure individual. You must make sure that you are entering an agreement that protects your rights, which is why it is smart to seek independent legal advice from a family lawyer before making any kind of decision.
These are the main pros and cons to weigh up regarding postnuptial agreements. There is a lot to think about, and every couple is different, so it is important to consider the benefits and drawbacks and have an open, honest conversation with your spouse. For many couples, a postnuptial agreement can provide clarity, protection, and peace of mind, which can help strengthen the relationship. However, the agreements can also cause mistrust and imbalance, which can obviously cause issues in the relationship.
