A Pre-Nuptial Agreement (‘prenup’) is a legal agreement made between soon-to-be newly-weds. Put simply, prenups allow you to seek to agree in advance on the division of assets in the (hopefully unlikely) event that you divorce.
Whilst typically seen as something that only the ‘rich and famous’ obtain, prenups are becoming much more commonplace, particularly as finances are a bigger concern than ever. Prenups are not recognised in statute, however, they can (and will) be afforded significant weight in court if drafted properly.
A prenup must be:
- Ideally entered into at least 28 days before the wedding, having both first received legal advice.
- Be objectively “Fair” and meet the “Needs” of the parties and importantly must not (in any way) prejudice the reasonable needs or requirements of any dependent children.
- Be arrived at in circumstances where (a) both parties understand and appreciate what they are potentially giving up by entering into the agreement and (b) must be entered into freely in the absence of duress or coercion.
- Ideally, updated and reviewed regularly.
So, would you recommend that everyone should get a prenup?
Divorce rates remain above 40%, therefore, it is pragmatic to protect one’s pre-acquired assets against the unforeseeable future.
Prenups can afford protection towards, for example, pensions, inheritance, property and savings.
Typically, the starting point for division of matrimonial assets is equal sharing; therefore, your spouse could be entitled to 50% of any assets you have at the time of divorce.
However, long gone are the days where prenups are seen to only be for the ‘super-rich’. Prenups are becoming increasingly more attractive to those marrying with pre-existing assets or later in life; a couple marrying later in life may already have property and business assets they wish to protect.
It is predicted that prenup popularity will continue to grow as millennials become increasingly more practical when it comes to financial planning.
What if I am already married?
If you have already tied the knot but would still like to protect your assets, you can obtain a Post-Nuptial Agreement (‘postnup’), the formalities of which are broadly similar to a prenup.
Our family lawyers have a wealth of experience in preparing bespoke pre and post nuptial agreements. The team have extensive and successful experience in enforcing the terms of pre and post nuptial agreements that have been prepared by us. We recognise the ‘unromantic truth’ of a prenup and therefore always endeavour to make the legal process as easy and efficient as possible.
This is only intended to be a summary and not specific legal advice. If you would like further information, advice or assistance in drafting or reviewing a prenup or postnup, please do contact a member of our team.
