The purpose of such an agreement is to set out what the parties have agreed will happen in the event that their relationship breaks down.
As is clear from the name, a post-nuptial agreement is an agreement entered into by spouses some time after their marriage or civil partnership.
Like its close relation, the pre-nuptial agreement (see Pre-Nuptial Agreements for more information), the purpose of such an agreement is to set out in a document what the parties have agreed will happen in terms of their financial affairs in the event that their relationship breaks down.
A post-nuptial agreement is not (yet) a legally binding document in this country but if prepared properly and if a Court considers its terms to be ‘fair’ in all the circumstances (including in relation to any children), it will carry considerable weight when it comes to dividing up a couple’s assets and sorting out their financial affairs at the time of a divorce or dissolution.
At Hughes Fowler Carruthers, we took the test case of MacLeod to the Privy Council, and succeeded in establishing there the validity of the post-nuptial contract our client had signed on our advice.