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If you are divorced and planning to marry again, you may take a different approach to the entire process.
Having experienced marriage and divorce before, you could be paying closer attention to the financial side of your upcoming nuptials. From protecting assets to balancing the needs of a new spouse with those of children from previous relationships, your estate plan deserves careful attention before you walk down the aisle again.
Whether you are revising old arrangements or starting fresh, here are five essential estate planning decisions to consider before you tie the knot for the second time.
1. Will you obtain a prenuptial agreement?
While prenuptial agreements are not legally binding in the UK, they can serve as a useful framework – helping couples agree on the financial principles of their marriage and clarify how assets will be combined, protected, and passed down.
For instance, if you have generational wealth that you would prefer to protect in the event of a divorce, a prenup can offer reassurance. it’s not just about safeguarding assets in the event of divorce; it’s also about respecting prior commitments or existing assets and ensuring clarity for all parties involved.
One of the rising areas of prenups is the “petnup” – an agreement that outlines who will keep the pet and how costs will be shared in case of separation. Pets remain “chattels” in eyes of the law but many are taking a more compassionate approach to ownership.
Of course, not every couple will feel the need to formalise arrangements with a prenup. A candid conversation may lead to the mutual decision that one isn’t necessary. That, too, is valid.
2. How will assets be split among children from previous marriages and any children you have together?
If you or your partner have children from previous marriages – and perhaps children together too – it is paramount that you discuss your inheritance plans as early as possible.
Not only may these conversations bring you closer to establishing financial harmony in your marriage, but they could help avoid potential disputes after your death.
Today’s Wills and Probate[1] notes that as many as 10,000 families are involved in inheritance disputes each year, with the number of cases reaching the High Court rising between 2022 and 2023.
For instance, “sideways disinheritance” could be deeply damaging to your children’s lives if it happened, and you may never have even discussed it with your partner. Sideways disinheritance happens when one party passes away and leaves their entire estate to their second spouse. This spouse then excludes the children from the first marriage, leaving the estate to the children they shared together (or someone else).
While this sounds like an unwelcome outcome that would hopefully never occur within your family, being pragmatic today could save your family such a situation later on.
Outside of the topic of sideways disinheritance, there remains plenty to discuss:
- Will you focus on equity or equality when leaving your wealth to the next generation?
- Are there already assets ringfenced for your children and grandchildren in a trust?
- Do you plan to make lifetime gifts to your beneficiaries and if so, in what form?
These are topics best discussed with your partner along with a wealth planner, to ensure total transparency and unity regarding your inheritance plans.
3. Who should be nominated in your Lasting Powers of Attorney?
You may have read our previous insights about Lasting Powers of Attorney (LPA) and the role these documents could play in protecting your wealth from unexpected life events.
Both types of personal LPA – health and welfare, and property and financial affairs – allow you to appoint one or more “attorneys”, or in other words, trusted individuals who can take over if you’re unable to make decisions for yourself. In the case of a property and financial affairs LPA, your attorney or attorneys can step in and help you manage your affairs at any time, even if you retain mental capacity.
When getting remarried, you may need to review any existing LPAs you have. In fact, if you are divorced, previous LPAs that nominated your ex-spouse as an attorney could now be invalid. In your new LPAs, you could now wish to nominate your future spouse or civil partner as an attorney or add them to a previously selected list of attorneys you have nominated.
On the other hand, if either of you don’t have LPAs, now may be the time to register yours and protect your shared wealth.
Read more: How to choose a suitable attorney to safeguard your wealth
4. Do you need to make a new will?
No matter your age, most adults need a legally valid will.
If you remarry, your previous will – if you had one – is declared invalid, so you will likely need to make a new one.
This is especially crucial if you have a complex portfolio of assets. Without a valid will, these assets may not be passed down according to your wishes when you die.
For instance, if you pass away and your will is not up to date or invalid, your new spouse could inherit everything according to the rules of intestacy, leaving your children without the inheritance you wanted them to have. This also leaves room for sideways disinheritance to occur.
There is also the subject of executors to consider. The Today’s Wills and Probate report notes that many disputes occur between beneficiaries and executors, leading to lengthy and costly conflict.
So, choosing an appropriate executor – be it your partner, a family member, or a solicitor – is essential.
5. Have you thought about Inheritance Tax?
The UK’s Inheritance Tax (IHT) landscape is changing.
With the nil-rate band remaining unchanged since 2009[2], and the residence nil-rate band tapering down for estates worth more than £2 million, it is likely that a significant portion of your wealth will be subject to IHT when you die.
Plus, the government is going ahead with its plans to include most unused pension benefits in IHT calculations from April 2027. There are also rumours that the government could put a cap on lifetime gifting for IHT purposes in the 2025 Autumn Budget, which may further subject your wealth to this tax.
Read more: 2025 Autumn Budget: Main themes and what they could mean for your wealth
The good news is that once you are married or in a civil partnership, you both benefit from the spousal exemption. Your spouse can inherit your entire estate IHT-free and later claim any nil-rate bands you did not use to pass assets down to other people, such as your children.
The spousal exemption essentially doubles the amount you can pass down tax-free as a couple. This said, it is still absolutely worth discussing IHT and how you plan to mitigate it together.
Common strategies for reducing the IHT on an estate include:
- Trusts
- Lifetime gifting
- Family investment companies
Of course, your circumstances are unique and there is no one-size-fits-all approach that guarantees IHT mitigation. Working with an experienced wealth planner can help you form an estate plan that works for you as a couple and puts the next generation at an advantage.
Get in touch with our team at IPS Capital
Our wealth planning, consultancy, and investment management professionals can help ensure you are entering your next chapter with confidence and peace of mind.
Please contact your relationship manager or email info@ipscap.com for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, Lasting Powers of Attorney, or will writing. IPS Capital does not provide tax advice.
[1] Today’s Wills and Probate, ‘Spike in inheritance disputes sees more families battling in court’, 29.10.2024.
[2] gov.uk, ‘Guidance: Inheritance Tax thresholds and interest rates’, 08.04.2025.
