If you live happily together and are about to tie the knot, it can feel unduly pessimistic and unromantic to think about what would happen if you split up. However, it’s a sensible precaution to ensure that certain financial assets such as business interests and inherited wealth are secured for your future. Prenuptial agreements (prenups) give you peace of mind and financial protection.
Many clients appreciate the certainty that a prenup offers and find that the arrangement allows them to discuss financial matters more openly before they marry. For an effective prenup, you must take expert legal advice, which the Thorneycroft Solicitors team is ideally placed and happy to provide. We can advise you on how best to create a fair, clear and dignified agreement for both parties.
What is a prenup?
A prenuptial agreement is a formal, written contract made between a couple before their marriage that sets out what will happen if the marriage breaks down. It stipulates how cash, property rights, business investments, debts, pensions and income will be treated.
What is a postnuptial agreement?
A postnuptial agreement can be entered into with the consent of both parties at any stage within the marriage/civil partnership after the wedding or civil ceremony has taken place. Leading up to the wedding itself there is so much to do that time can run out and the window for a prenuptial agreement is lost. In these circumstances a postnuptial agreement can fill this gap. Equally unforeseen events can arise within the marriage which mean the parties have to consider setting out in formal terms their entitlement to assets, pensions and income. A postnuptial agreement can set down the intentions of each party during the marriage and in the event of separation. As long as the terms are fair a properly drawn agreement will be given serious consideration by courts in a divorce situation.
Why do you need a prenup?
Legally, once married, a couple’s assets become marital assets, and unless specifically protected, they are thrown into a single financial pot. In a divorce, judges in the Family Courts hold very wide discretion when dividing assets, and the law has to be flexible in applying to each case. Therefore, the challenge for all divorcing couples is that the discretionary element makes it hard to predict the outcome of a divorce financial settlement. This makes deciding who gets what even more problematic, with a lot of scope for arguments, delay and higher legal fees.
Prenups are designed to stop or limit financial claims if a couple separates after marriage. They are to control what will happen with the couple’s wealth should the marriage break down. This substantially narrows the extent of judicial discretion. Pre and post nuptial agreements are therefore commonly used to:
- Prove what assets are brought into the marriage and by whom – often these assets are called ‘non-matrimonial property’
- ‘Ring fence’ specific assets
- Limit amount and duration of maintenance payments
- Limit claims to less than half of all assets
- Protect assets for children from a previous relationship
- To shield yourself from being liable for any debts your partner has
What specific circumstances might benefit from a prenup?
As discussed, a prenup is arguably worth considering under any circumstance, as it’s a pragmatic approach that encourages an open discussion about a couple’s finances and expectations. However, there are some specific situations where a prenup is most commonly used:
Where there is an existing wealth disparity between you and your partner
The most common reason for signing a prenup is when one partner brings significantly more wealth or assets into the marriage than the other.
Where there is an expectation of future wealth for one party
A prenup can also protect assets you do not have at the time of signing but expect to have in the future. For example, one party may expect to earn significantly more than the other through investments, career progression, or inheritance.
If there is a business to protect
If one marriage partner is a business owner, this business could be viewed as a joint asset to be split in the event of a divorce.
If there is an inheritance portion to protect
In addition to protecting the expectation of a future inheritance, a prenuptial agreement can also safeguard money or assets one partner intends to pass on as inheritance to someone else.
Where there is the possibility of international divorce law
If you are marrying someone from outside the UK, you may want to specify which national jurisdiction any future divorce proceedings will fall under.
Is a prenuptial agreement binding in the UK?
Pre and post nuptial agreements are not currently legally binding in England and Wales but that does not mean that they are of no use. Recent cases show that nuptial agreements are being upheld as long as:
- Both parties freely entered into it
- Terms of the agreement have to be fair and realistic
- The spouses fully appreciated the implications of entering into it
- Both parties received independent legal advice
- Full financial disclosure was made
- It was signed at least 28 days before the wedding
Start the prenuptial agreement process today
With decades of experience in UK family law, Thorneycroft Solicitors can advise you on all your options. We have worked on pre and post nuptial cases of all types and sizes, handling complicated assets, financial interests and relationships. You will find our prenuptial and postnuptial agreement solicitors are friendly, approachable and knowledgeable; together, we can arrange an agreement to suit you and your partner.
We are recognised as one of Cheshire’s leading family law firms and are authorised and regulated by the Solicitors Regulation Authority. With a network of local offices, we offer a personal service, explaining things to you clearly and ensuring you feel comfortable with every decision. We understand that a nuptial agreement is a confidential document that should be treated with sensitivity. Our experienced pre and post nuptial agreement solicitors take the time to understand your circumstances and help you weigh up the different conditions so that you come to the right agreement, ensuring all legal formalities are followed. We will ensure the resulting settlement is in jargon-free, straightforward language that both sides can understand.
Entering a pre or post nuptial agreement is a sensible choice for many couples, enabling them to focus on their wedding and future life together. If you need further information on how a nuptial agreement could work for you or around costs, speak to a member of our responsive team today.
