Devon & Somerset divorce Solicitor, Jen Law, takes a look at the rise of the prenuptial agreement in the UK and asks, ‘what could one do for you?’
Prenups are on the increase
Everyone loves a good wedding, especially the bride and groom. The immaculate suit, the beautiful dress, the pealing church bells, the flutter of confetti, the photo opportunities, the mysterious relations who only turn up for the free food and booze…
As Groucho Marx quipped: “Marriage is an institution. And who wants to be in an institution?” Well, as it turns out, a lot of people do.
Often when couples are engaged, conversations are typically focused on wedding planning and other romantic notions, which may make the discussion of a pre-nuptial agreement seem bleak. However, with an increasing number of second marriages and later-in-life marriages with pre-marital assets to protect, prenuptial agreements are becoming viewed as shrewd financial planning, rather than a sign of mistrust.
We are also seeing an increasing number of younger people turning to prenuptial agreements in an effort to ensure that if their marriage does end, there is not a messy divorce that goes on for years with a large legal bill at the end.
Contrary to popular belief, prenuptial agreements are not only for celebrities or wealthy individuals. A prenuptial agreement can benefit couples from all walks of life, with a little or a lot of assets that need protecting.
So, what is a prenuptial agreement, and why are more people having them?
Prenuptial agreements are agreements between couples entered into before marriage, and it sets out how assets, property, income, and liabilities should be dealt with if the relationship subsequently ends.
People are entering into prenuptial agreements more regularly now as it is becoming more common to:
- Own property prior to the relationship
- Have significant savings and interests
- Want to protect a pension
- Protect business ventures or family businesses
- Have anticipated inheritance or family wealth
- Have children from previous relationships
Prenuptial agreements can also help with financial transparency before entering into the marriage, as all the couple’s assets, jointly and individually, have to be assessed.
Assessing All the Assets
A prenuptial agreement will usually set out an itinerary of both parties’ income and assets, how they’re owned, and how future ownership is intended. Included in the prenuptial agreement are things such as how any property will be divided on divorce or separation and how bank accounts, shares and other valuable assets, jointly and solely owned, will be split. The agreement will also deal with any issues of maintenance and how long it will be paid.
A prenuptial agreement can last indefinitely, although it will carry more weight the earlier a marriage breaks down. If the marriage lasts many years, it’s very likely that the circumstances will change. For example, if the couple has children and one party has to give up their job to care for them, this could outweigh the provisions of the prenuptial agreement.
Are prenuptial agreements legally binding?
It is important to note that a prenuptial agreement is not legally binding. However, in the event of divorce, the courts will still consider it and take it into account.
The importance of both parties obtaining legal advice
In recent cases, judges have been questioning whether both parties to a prenuptial agreement obtained professional legal advice before signing it, and taking this into consideration when determining the validity and provisions of the agreement. It is therefore important for both parties to obtain legal advice from specialist solicitors when considering a prenuptial agreement.
Call Us Today
We have a team of lawyers across Devon and Somerset who have had many years’ experience successfully dealing with divorce and prenuptial agreements.
Call us now on 01271 372128 for a free review of your situation and find out what a prenuptial agreement could do for you. Alternatively, email [email protected].
