Post-nuptial agreements are an increasingly important tool for couples who want clarity and certainty over their financial arrangements, particularly where significant inherited wealth is involved.
This case demonstrates how Tees supported a client in achieving a fair and balanced agreement that protected both parties’ interests while preserving a positive family dynamic.
For context
Caroline* and David* had been married for nearly 22 years when she received nearly £6 million in inheritance.
As a consequence of being married, Caroline and David have matrimonial financial claims against each other for income, capital and pensions. Caroline was therefore keen to ensure that her inheritance was protected from any future claims in the unfortunate event of the breakdown of her and David’s marriage.
Having first discussed between themselves, a post-nuptial agreement was then drafted by Caroline’s solicitors. The overall intention was to share matrimonial assets equally, but Caroline and David would each retain their separate property, which would include any assets they have inherited or received from their families.
Caroline and David had also previously had family inheritances. David had also given up his career to be the homemaker and carer for their child, leaving Caroline to pursue a lucrative career, which provided a healthy pension fund for retirement.
What happened next
David sought independent legal advice, and we were instructed to act on his behalf. We carefully reviewed the proposed agreement and advised him on its implications. Our advice was that the document fell short of what would be appropriate for him to be financially protected. This was particularly around making sure that they would both have a similar lifestyle so that the child of the family would be able to feel a similar lifestyle in each others homes if they were to separate. It was necessary to provide balance around ringfencing the latest inheritance Caroline received with protecting David financially both now and in retirement.
The outcome
Following our involvement, a number of revisions were negotiated, with several drafts exchanged between solicitors to ensure the terms were reflective of both parties’ positions. This needed to be done sensitively as Caroline and David were happily married and points raised to assist should be done collaboratively to ensure no difficulties arose between them.
This case highlights the importance of independent legal advice and a collaborative drafting process to ensure that your interests are properly considered and protected.
Why Tees made a difference
- Independent, strategic advice: Providing clear guidance on the limitations of the original agreement and the risks to David’s financial position
- Balanced approach to fairness: Ensuring protection of inherited wealth while securing appropriate provision for the financially weaker party
- Focus on family outcomes: Prioritising a structure that would support a consistent standard of living for the child across both households
- Expertise in complex post-nuptial agreements: Navigating issues around pensions, inheritance, and long-term financial security
- Collaborative negotiation style: Maintaining a constructive and amicable dynamic between the parties throughout
- Attention to long-term planning: Ensuring the agreement addressed both immediate needs and retirement provision
- Pragmatic drafting solutions: Achieving a refined agreement that reflected real-life circumstances and future contingencies
Giving you the full picture
This case highlights Tees’ expertise in complex post-nuptial arrangements, and our ability to find clear, pragmatic solutions. If you need support for a similar issue, do not hesitate to contact us.
*We have changed the names of those involved to protect their privacy.
