Prenuptial Agreements

We have all heard or read in the papers about pre-nups and tend to think they are only for the rich and famous, something more suited to Hollywood than us. However, more and more frequently couples in England and Wales are signing a prenuptial agreement. Some of the most common reasons couples cite are:

• second marriages
• to protect assets which they may have inherited
• to ensure children from a previous relationship are provided for
• to ensure that they retain certain items of sentimental value such as jewellery
• where there is a business to protect
• if one party is significantly wealthier than the other
• to ensure a non-acrimonious division of assets should a separation occur

What actually is a prenuptial agreement?

A prenuptial agreement is a contract signed by two people before they get married or enter a civil partnership. It clearly sets out what property and money belong to each party before the partnership, what the intention is during the partnership as well as what should happen to these assets should the relationship come to an end. It is a practical way of simplifying life after the relationship ends.

Are prenuptial agreements legally binding?

Strictly speaking, prenuptial agreements are not legally binding in England and Wales. This means that a court is not compelled by law to uphold them, although they will be weighed into the mix. However, in reality, provided they are fair, meet needs after divorce and have been entered into willingly at least a month before the marriage or civil partnership, are drafted with the correct considerations, and witnessed, then it is very likely that a court will follow the prenuptial agreement if called upon to decide on a financial settlement following separation, placing great weight on it. Our advice is always that you should not sign one of these documents unless you are prepared to be held to it.

When entering a prenuptial agreement, the parties must provide full disclosure of their respective assets and liabilities and obtain independent legal advice.

Should I get a prenuptial agreement?

Once you are married you and your spouse or civil partner have a different legal status to your single self. In practice, this means that any assets owned before the marriage as well as those accumulated during the marriage can be treated the same way and divided appropriately between the two of you in the event of a divorce or separation. By contrast, a prenuptial agreement means that you can identify specific assets that belonged to you prior to the partnership and make sure that ownership of them will always reside with you, providing all needs are met. The prenup can also make agreements regarding existing or future pets and children. If you are unsure of what to do, an experienced lawyer can help you decide if a prenuptial agreement is right for you at this time.

What about assets acquired after marriage?

Generally, assets that have been acquired since marriage will belong to both parties and are treated as matrimonial property to which you have both equally contributed and therefore that you should both equally share. It is possible to add to or amend a prenuptial agreement after marriage. However, it is perhaps better advice to try to pre-empt the acquisition of certain assets, such as a family home, and include them in the agreement from the start. A prenuptial agreement usually lasts the lifetime of the marriage although it is possible to include a definite end date which may coincide with other events such as the birth of a child.

What if I am already married?

If you have already married, you can still make a similar type of agreement which is known as a postnuptial agreement. This might be wise if your relationship hits a rocky patch, but you want to try again, while planning amicably about what should happen if the future is not as you hoped.

Prenuptial agreements are not just for the rich and famous! Many people are marrying later in life or after they have inherited wealth from their family. Maybe it is a second marriage and you both want to make sure your children from a first relationship are provided for. We understand that every relationship is different and can prepare bespoke prenuptial agreements on a fixed fee basis.

If you need assistance, contact [email protected] or call 0800 083 6051 for expert family law legal advice.