Sadly, not all marriages are successful and there’s always a chance (however small) that it could end in divorce. You may even have heard of the old estimate that “50 percent of marriages end in divorce”.
With the possibility of divorce, some couples decide to sign a prenuptial agreement to avoid future disputes regarding assets should they get divorced down the line. In this guide, we’ll look at how the agreement works and answer some of the key questions surrounding this topic.
What does a prenuptial agreement mean?
A prenuptial agreement, or “prenup,” is a legal contract between a couple before they get married. It essentially outlines how assets and debts will be managed in the event of divorce or separation to avoid any financial disputes.
For example, if you own a business, you could state in your agreement that the business remains your property if you get a divorce. Your spouse would then have no claim to the company or any associated profits, thereby protecting your financial interests.
Similarly, you can determine how any joint assets will be handled, including properties, cars, savings accounts, and even pensions.
Why may you need a prenuptial agreement?
Some couples choose to draw up a prenup, so there’s a fair divide of the assets if the marriage/civil partnership were to end. There are other reasons why you may decide to have a prenup, such as:
Financial Protection
One of the main reasons for creating a prenup is to protect individual assets and manage finances in a way that both parties understand and agree upon beforehand. This is especially important for those entering a marriage with significant assets, businesses, or complex financial matters.
Safeguarding family inheritances
Family heirlooms or inheritances can hold significant sentimental value to couples. A prenup can help safeguard these items from being divided in the event of divorce, keeping them within the bloodline.
Debt Protection
If one partner has significant debts before marriage, a prenup can ensure that the other partner is not held responsible for those debts in the event of a divorce. This can help maintain financial stability and protect the credit ratings of both individuals.
Children
Your prenup can also specify how custody, financial support and future inheritances for children will be handled. While courts typically have the final say on child custody matters, having a prenup can provide a record of both parties’ intentions.
It can also show how you agree to manage finances related to the children, including medical expenses, education costs, and additional support.
Is a prenup legal in the UK?
Although you may have heard the term used in American movies or TV, prenuptial agreements are indeed recognised in the UK law, though they aren’t automatically enforceable in courts in England and Wales.
The court can dispute the terms of a prenup if it finds that the agreement does not meet certain criteria. For an agreement to have a stronger chance of being upheld, it should be fair and made voluntarily, and independent legal advice should be provided to both parties.
Can you change a prenup after marriage?
Once a marriage has taken place, a prenuptial agreement remains binding unless both parties agree to modify or void it. To make changes, a couple typically must enter into a new agreement known as a “postnuptial agreement”.
Couples may choose to modify their prenup for several reasons, including:
- Changes in financial circumstances such as new assets or changes in income
- The addition of children to the family
- Changes such as health issues, career, or even the decision to start a business
Both parties will need to agree on the changes so that the new agreement is valid and enforceable.
What is the difference between a prenup and postnuptial agreement?
The difference between a prenup and a postnup is primarily the timing of when they are created and their intended purposes. You’ll sign a prenup before you are married, whereas a postnup is signed once you are married. Both are used to outline the financial rights of each spouse in the event of a divorce or separation.
How do I get a prenuptial agreement?
Before you start anything make sure to have a conversation with your partner about a prenup to make sure you’re on the same page. Ideally, you want to do so before your wedding or civil partnership ceremony to make things smoother.
It’s highly recommended to get legal advice from a lawyer who specialises in family law. Each partner should have their own solicitor to make sure there is fairness and that both sides fully understand the implications of the agreement.
A legal expert will provide valuable insight into drafting an agreement that meets legal standards and protects both parties’ interests.
Both partners should openly disclose their financial situations, including income, assets, debts, and any expected inheritances.
Once financial disclosures are complete, your solicitors will draft the agreement. After the terms have been agreed upon and drafted, you should review the document thoroughly before you sign.
Ideally, you’ll want to sign it well in advance of your wedding or civil partnership ceremony to ensure there are no claims of coercion.
Can you write your own prenup?
While you can technically draft your own prenup agreement, it’s not advisable. It’s less likely to hold up in court as you may not have the necessary legal expertise to ensure that all crucial elements are included.
An improperly drafted document may be deemed unenforceable in a UK court, potentially leaving your financial future vulnerable.
How long do prenuptial agreements last?
Prenuptial agreements are designed to last throughout the duration of a marriage. However, it’s possible that certain conditions could lead to the expiration or revisions within the agreement.
Can a prenup be voided?
Just like any legal document there are certain instances where a prenuptial agreement can be voided.
The most notable is if one partner was pressured into signing the agreement under duress or coercion. In this case, the court may find the prenup unenforceable as both parties must voluntarily agree to the terms without any form of intimidation or emotional manipulation.
A prenup could also be voided if it is deemed that the terms are unfair or one-sided or if assets weren’t disclosed prior.
Seeking advice?
Protecting your future starts with the right advice. If you’re planning a marriage or civil partnership, speaking with an experienced prenuptial agreement solicitor is a smart way to ensure your assets are protected.
Our family law solicitors offer professional legal advice to help you draft an agreement that suits your unique circumstances. With years of experience guiding clients through the process, we aim to make it as stress-free as possible.
Whether you prefer a face-to-face meeting or the convenience of a virtual consultation, our team is ready to help. Contact us today via call, or email at enquiries@bgw-solicitors.co.uk.
