Prenuptial Agreements – An Overview

What is a prenuptial agreement?

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. It is usually considered by an engaged couple before their marriage who want to protect what they bring to the marriage and share any wealth they generate together.

No one ever embarks on a marriage expecting to separate, but the sad fact is that not all marriages work out 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. It is important to note that prenuptial agreements are not just for the wealthy. They are just as important in cases involving fewer 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.

When do I need to get a prenuptial agreement?

Although prenuptial agreements are not legally binding in the UK, they are taken into consideration by the Court as long as certain conditions surrounding their preparation are satisfied.

One of those conditions is that the prenuptial agreement must have been made at least 28 days before the wedding or civil partnership.

We often see couples enquiring about a prenuptial agreement in the weeks or even days leading up to their wedding. Prenuptial agreements must be entered into freely and without undue influence, duress, or misrepresentation and if the agreement is made too late, it can allow one of the parties to successfully argue upon divorce that they entered into the agreement under duress.

The process of creating a prenuptial agreement is not a quick one. The parties are required to disclose their financial situations to each other, a process that can take weeks as this requires each party to request and collate several financial documents.

Additionally, a solicitor requires time to prepare the document and each party must have sought legal advice from separate solicitors at the time the agreement was formed.  There may also be negotiations regarding the provisions of the agreement.

Generally, we suggest that couples instruct a solicitor at the very least four months before their wedding to allow enough time to exchange financial disclosure, negotiate an agreement, have their solicitor draft the agreement and allow the other party to seek independent legal advice as to the agreement reached.

What if I have left it too late?

If your wedding date is coming up and it is too late for you to enter into a prenuptial agreement, this does not mean that you cannot protect your assets.

You should consider entering into a postnuptial agreement after you are married. Postnuptial agreements are the same as prenuptial agreements, only they are entered into during the marriage rather than before it.

If you are planning to get married and are concerned about protecting your assets but you think that you may have left it too late, then it is important to obtain specialist legal advice as soon as possible.