We believe that prenuptial agreements can benefit many couples, helping to alleviate concerns over what will happen to their finances if they separate.
With that said, there seems to be a common misconception that pre-nups are reserved for the rich and famous.
This is not true.
This is just one of the many common misconceptions which surround prenuptial agreements. In today's global economy, the cost-of-living crisis amplifies many people's concerns over managing their finances.
For example, interest rate rises in recent years have many people thinking, Could I afford to live separately?
Therefore, this arguably amplifies this concern over longer-term financial and wealth management. We are here to help you form a robust and well-drafted pre-nuptial agreement.
You may find that this alleviates such concerns, allowing one or both partners to enjoy their marriage more knowing such an agreement has been put in place.
What exactly is a prenup?
In short, a pre-nuptial agreement is drafted before the couple marries. The agreement should be robust and have unambiguous statements. Your appointed family lawyers can advise and help you establish such an agreement.
What is essential and crucial to remember is that your relationship is unique; therefore, you need an agreement to reflect this. Where one couple's priorities might be what will happen to a string of jointly owned rental properties, another couple, on the other hand, may be more concerned with who keeps the much-loved family pet post-divorce.
A pre-nup is therefore bespoke, it should be tailored and written with what you most want to protect and retain post-divorce. The agreement can be detailed and exhaustive, alternatively, it may just consider one asset of most concern if you were to separate, such as the family home.
What exactly should be written into my prenup?
Remembering that any couple can form a prenuptial agreement, regardless of income bracket, whether you have ample assets or a modest amount.
What's important is that you and your partner want to set out in writing what you would like to happen if you divorce.
Common statements within such an agreement will be what will happen to the family home and other debts. However, the agreement should be bespoke; therefore, it should be crafted to stipulate what you would like.
Are prenups binding?
The short answer is no.
This answer often raises a person's eyebrow, with a look of: well, why enter such an agreement?
The reason is that the family courts will strongly consider a well-drafted pre-nuptial agreement, which is kept up-to-date. However, there is a set of criteria that needs to be met.
It’s important to note that section 25 of the Matrimonial Causes Act of 1973 stipulates that the family courts can make an order at their discretion. For example, if the family courts consider an agreement unfair to one side, they may discount it and arrive at a different settlement.
With that noted, in the high-profile case of Radmacher v Grantatino in 2010, the Supreme Court demonstrated that it will uphold prenuptial agreements as long as specific criteria are adhered to.
What does this mean to a non-legally trained person?
In short, it means the agreement must be as robust and watertight as possible.
This means you must collaborate with a family law practice that can advise you further.
You must satisfy the set criteria for the pre-nuptial agreement to be upheld. Even though the courts will consider the agreement strongly, they are not duty-bound to honour or enforce it.
Also, the agreement should be entered into after you have sought bespoke legal advice. We would not recommend a “off-the-shelf” agreement, that is prewritten, as this will often not reflect your unique situation.
Why does a prenup need to be kept updated?
A couple's financial situation will change substantially as you progress through your marriage.
For example, the couple's accumulated assets will most likely look very different after 25 years of marriage than they did at the start of the journey.
Therefore, we recommend that your prenuptial agreement be considered “live”.
Certain transactions with solicitors can be a one-off, for example, buying your property and having a solicitor help with the transaction and conveyancing.
Pre-nuptial agreements are different. You should consider entering into such agreements as “live documents”.
What we mean by this is that from time to time, they will need updating.
Just as you update your insurance policy taken out over your home, you often alter the agreement to reflect the level of cover you want and the assets being covered.
Pre-nuptial agreements also need to be updated. A partner may, for example could inherit a home or wealth; such material changes in your financial position should be reflected in this agreement.
Hire the experts
We are on hand to help and advise you throughout your journey.
Whether you need help forming a cohabitation agreement, prenuptial agreement or any matter relating to family law, such as initiating divorce proceedings, we are here to help.
We are the experts; we can help you form a workable solution to any issue or dispute related to family law.
