It should be noted that the length of the marriage will have an impact on this, and the terms of a prenup are much less likely to be considered if a couple had separated after 20 years than if they divorced after six months.
Prenups are particularly good for blended families as they give couples the opportunity to openly discuss how they wish to allocate their collective finances before the marriage takes place.
Although they have a reputation for being linked to a lack of trust in a relationship, they are actually a powerful tool for communication and financial transparency, helping to bring clarity and prevent any misunderstanding in the future.
A post-nuptial agreement is similarly a contract agreement entered into within any timeframe following a marriage or civil partnership, which outlines the ownership of financial assets in the event of a divorce.
It is also key to understand the nature of any joint ownership of assets when thinking about what is going to happen after death.
Depending on the particular circumstances, it may be appropriate to change how people own joint assets so that any planning included in the wills can be most effectively achieved.
Essentially there are two types of joint ownership: a joint tenancy and a tenancy in common.
If a couple owns their home as joint tenants, then on the death of one of them, the ownership of the home automatically passes outright to the other, so that the home becomes fully owned by the survivor. Their wills have no impact on what is called the automatic right of survivorship.
Conversely, if a couple owns their home as tenants in common, e.g 50/50, this means they each own a distinct half share of the property and their half share can be passed to their chosen beneficiaries via their will, which can be particularly useful with blended families.
It does, however, have the drawback that each party has the ability to sell a share without needing consent of the other owner.
Considering the role of pensions
Pensions fall outside of the estate for inheritance tax purposes and therefore are not usually included as part of a will. They can, however, be a useful way of complementing the wishes made in a will, helping to ensure assets pass to beneficiaries in an equitable manner.
It is important to remember that pensions are not governed by the will of an individual, and instead the expression of wishes gives guidance to the scheme trustees on how to distribute the funds.
The EOW should be reviewed regularly, as leaving an ex-spouse on there could see them inherit an entire fund on death, regardless of the structure of a will.
