What is a Prenup?
Many people avoid putting a prenuptial agreement or ‘prenup’, for fear that they are being ‘unromantic’. However, just as you would protect your assets and other interests in your will, or insurance in place for future events, having an agreement drawn up by a specialist lawyer can give you peace of mind, security and confidence.
In business, a shareholder agreement is often in place should any problems occur in the future. Equally, a prenuptial agreement offers future security and allows both parties to a relationship to set out what they intend to happen, in the event of separation. While the majority of couples enter a marriage or civil partnership expecting it to last, this often doesn’t turn out to be the case.
A prenuptial agreement can act as a sensible insurance option. Whilst this is an awkward an issue to broach at the outset of a relationship, often coming across as unromantic, an agreement assists with certainty ad reduces conflict and confusion if things go wrong when a relationship breaks down.
Is a Pre-Nuptial Agreement legally binding?
It is correct that Judges have the power to overrule a prenuptial agreement during the divorce process. However, this tends to happen if the Courts believe that the terms stated in the agreement are no longer valid; when circumstances have changed considerably or the terms agreed put children at risk.
An Agreement should be prepared properly and people must enter into the agreement voluntarily, without undue pressure, and be informed of its implications.
This means that each person will need to have independent legal advice on what they would be legally entitled to if there isn’t a Pre-Nuptial Agreement in place, and how the agreement may change this.
It is also important for each person to make full disclosure of their assets (including property, business interests, money in bank accounts, pensions, income) at the time of the agreement. All of this should be done before the agreement is signed.
In most cases, Judges will take the prenuptial agreement into consideration, and even more so if it is clear and specific.
What Can be Included in a Pre-Nuptial Agreement?
Pre-nuptial Agreements can include anything you want them to, but the main purpose is to set out what will happen to your finances if the marriage were to break down. Common things that are covered in Pre-Nuptial Agreements are:
- How to property either of you brought into the marriage should be divided
- What would happen to the family home
- What would happen to any property given to you or inherited during the marriage
- What would happen to joint assets
- What would happen to pensions provision
- How debts would be dealt with
- If maintenance would be paid or received and, if so, for how long
It is important that the agreement is reviewed every so often, particularly after any children are born, as the Court will take the children’s needs into account first when deciding on a financial settlement. The Court is unlikely to uphold an agreement that does not take the needs of your children into account, or that is detrimental to your children.
Why should you get a prenuptial agreement?
There are many reasons why you should get a prenuptial agreement uk, especially if you are planning on getting married in the near future. A prenuptial agreement can protect your assets and property in the event of a divorce, and can also help to keep your financial affairs in order during the marriage. If you have significant assets or property, it is highly recommended that you get a prenuptial agreement uk before getting married.
- Protects the assets of both parties before marriage.
- Helps to avoid potential arguments over finances in the future.
- Allows couples to agree on how their assets will be divided if they divorce or separate.
- Prenuptial agreements can provide clarity and certainty for couples entering a marriage, especially those with significant wealth or property holdings prior to getting married.
- Can help protect inherited family wealth from being split up after a divorce or separation
- Can reduce financial stress during a divorce as much of the decision making has already been decided by both parties before hand
- Prenuptial agreements are legally binding documents which are enforceable under UK law provided certain conditions have been met
- Provides peace of mind that neither party is at risk financially should anything happen in the future
- Avoids costly court proceedings as disputes may be settled out of court using prenuptial agreement terms