Previous posts have explained the various aspects of binding financial agreements (often referred to as 'prenups').
On a number of occasions recently, we have had cause to review binding financial agreements in the context of wider estate plans, and in particular, have had to consider whether, in the event of a death of a spouse, the binding financial agreement takes priority or whether the will applies.
As is the case in many estate planning areas, the rule of thumb to remember is that the issue must always be reviewed on a case by case basis.
This said, generally, a prenup should at least expressly set out whether it is intended to apply on the death of either spouse.
Ideally, the document should be crafted in any event to complement the provisions of the estate plan.
In some situations the provisions can also regulate what should occur if one of the spouses seeks to challenge the provisions of their former spouse’s estate plan.
** For trainspotters, ‘Winner takes it all’ is song by Abba from 1980, learn more here –
https://www.youtube.com/watch?v=92cwKCU8Z5c
Image courtesy of Shutterstock