A prenuptial agreement (prenup) is a contract between the parties to an intended marriage or civil partnership that seeks to regulate their affairs in the event that the relationship ends. This is usually a couple who are living together before marriage who want to protect what they bring to the marriage and share any wealth they generate together.
No one ever goes into a marriage expecting to separate, but the sad fact is that around 50% of marriages end in divorce and this is why you should protect yourself and your assets. Prenuptial agreements are becoming increasingly popular and are relied on as a way of protecting family wealth and preserving assets.
Financial arrangements will usually be the main focus of a prenup, but they can cover anything such as the arrangements for children or the most appropriate jurisdiction for the divorce.
Are prenup agreements legally binding in the UK?
Prenup agreements are not legally binding in England and Wales but have been regarded by the Courts as persuasive and even decisive in some cases. It is always better to have a prenup in place if there is any difference in financial status. If the marriage or civil partnership breaks down and finances go to Court the existence of a prenup will influence the outcome of an application for financial remedy and can be determinative.
The Court will consider all of the circumstances surrounding the prenup, including:
- How the agreement was entered into;
- The timing of the agreement and proximity to the marriage; and
- Whether the parties had taken legal advice independently before signing.
For the agreement to be binding, it is likely the Court will want to know it was entered into voluntarily, without undue pressure with such disclosure that an informed decision was made.
Laws for married people are significantly different to cohabitees and therefore you should always take independent legal advice when considering marriage, particularly when there is either a difference in income, assets, an age gap or children from a previous relationship.
Once you have a prenup, it should be kept under review and checked regularly to make sure it is still appropriate to the circumstances of your case. Whether a prenuptial agreement will be binding will all depend on the circumstances at the time and inevitably each case will turn on its own facts.
A prenup is one of the ways we can work with you to protect your wealth and preserve your assets. As marriage also impacts upon inheritance rights you should also take professional independent legal advice to ensure your estate passes in accordance with your wishes.
How Nelsons can help
Melanie Bridgen is a Partner in our expert Family Law team.
If you are planning on getting married or entering into a civil partnership and need advice regarding a prenup (or postnup) agreement, please get in touch with Melanie or another member of our team in Derby, Leicester on Nottingham on 0800 024 1976 or via our online enquiry form.
A member of the team will be happy to discuss your circumstances in more detail and give you more information about the services that our solicitors can provide along with details of our hourly rates and fixed fee services.
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