Whilst pre-nuptial agreements, often referred to as a ‘prenup’, are popular amongst celebrities, they are not just designed for the rich and famous and are considered a good idea by more and more of the UK population.
What is a prenuptial agreement?
A prenuptial agreement is a written contract entered into by a couple before marriage or a civil union. It is intended to outline ownership of assets and what will happen to them if the marriage or civil partnership ends.
Why would you need a prenuptial agreement?
Prenuptial agreements are considered as a form of wealth protection. For example, where one party has significantly more wealth or assets than the other prior to entering a marriage or civil partnership. This means that they stand to lose a lot more then the other in an equal split should the marriage/partnership end in divorce/dissolution. However, a prenuptial agreement can still be worthwhile even where there is not significant wealth. Divorce can be unpredictable with acrimonious litigation always a risk. Having a prenuptial agreement in place can reduce animosity between the parties and avoid a great deal of uncertainty.
The objectives of a prenuptial agreement are:-
- Clarification – to clarify how the parties will conduct their financial affairs during the marriage/partnership to enable the couple, especially the financially weaker party, to have transparency at the start of the marriage. This may also assist the financially weaker party to feel financially secure within the marriage.
- Certainty – to provide certainty for the couple who wish to formally agree how their assets should be divided if they later separate or divorce.
- Protection – to protect assets such as inheritance, pre-marital property, from a later financial claim.
- To limit scope for uncertainty, emotionally and financially costly Court proceedings in the event of the future breakdown of the marriage/partnership .
The disadvantages of a prenuptial agreement include:-
- Unromantic – listing assets that are not to be shared in the event of the breakdown of a marriage/partnership may seem unromantic
- Unnecessary – couples who are aware of the extent of each other’s property may consider full frank and clear disclosure a waste of time.
Is a prenuptial agreement binding?
Pre-nuptial agreements are not binding in UK Courts. The parties to a prenuptial agreement cannot override the Court’s broad discretion to decide how to redistribute their assets and income on an application for financial remedy. When considering an application for financial remedy the Court must however, give appropriate weight to a prenuptial agreement as one of the relevant circumstances of the case when considering the factors set out in Section 25 of the Matrimonial Causes Act 1973.
If the Court are satisfied that the agreement was entered into by both parties freely, with full disclosure of each other’s financial position, with both parties having separate legal advice, signed and witnessed by both parties and providing the terms of the agreement are fair and reasonable, the agreement is likely to be upheld by a Judge.
Can you get a prenuptial agreement after getting married?
Prenuptial agreements must be signed before the marriage/civil partnership takes place. If a couple get married/enter into a civil partnership and decide they want the protection similar to that offered by a prenuptial agreement, then they can sign a postnuptial agreement instead. This is effectively the same in legal terms but just happens after the marriage/civil partnership.
If you wish to discuss the benefit of drawing up a prenuptial agreement then please get in touch for a free no obligation consultation with RJT Solicitors on 01257 228027 or by email info@rjtsolicitors.co.uk
