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Toby YerburghPartner - Head of Family Law
What is a prenuptial agreement?
A prenuptial agreement or ‘prenup’ is a legal document drawn up between two people before they get married. It sets out the division of assets, property, income and debts in the event of a breakdown of the marriage.
What is the purpose of a prenuptial agreement?
The main purpose of a prenuptial agreement is to provide certainty regarding how your wealth will be divided should you get divorced. Having an agreement in place means you can control your individual entitlements rather than leaving it to the discretion of the courts.
Typical reasons for entering into a prenup include:
- Protecting an inheritance
- Protecting wealth or specific assets you want your children to inherit
- Allowing one person to retain control of their business
- Protection from your partner’s debt
- Ensuring you both have a say in how finances will be divided if the relationship breaks down
Why should you have one?
Prenuptial agreements are more likely to be put in place when one partner has more assets than the other. For example, those with a business ownership, property portfolio or large inheritance may want to protect their assets from division in the event of a divorce. Couples who are entering second marriages and those marrying in later life also may choose to sign a prenup as a way of protecting their pensions and the inheritance of their children.
Anyone can enter into a prenup, however, and for any reason. If you’re entering into a civil partnership, your solicitor can draw up a pre-registration agreement in the same way.
Are prenuptial agreements legally binding in the UK?
Premarital agreements are not legally binding in the UK. However, the court will accept them as evidence of a couple’s intentions as long as both parties received legal advice when they made the agreement, both parties were honest about their financial situation before the agreement was formed and as long as they are regarded by the Court as ‘fair’ and meeting their needs and the needs of their children.
A prenup should be signed at least 28 days before the marriage or civil partnership. It’s important to speak with a specialist solicitor as soon as you can to ensure the agreement is robust enough to stand up in Court.
What’s included in a prenuptial agreement?
Prenuptial agreements are bespoke documents and can be tailored to your exact requirements. Some are incredibly detailed and will include an inventory of every asset you own, with details on how you wish for them to be divided should you divorce.
The best place to start is to create a list of your respective property, assets, income, savings, bank accounts, stocks, pension pots, inheritance and business interests. Then, with the help of a solicitor, work out what should happen to each asset line by line. You can also include arrangements for future income and assets you acquire.
What cannot be included in a prenup?
While a wide range of financial matters can be included in a prenup, there are some issues that you cannot include. These include any provisions that relate to child arrangements or maintenance arrangements that are not in the child’s best interests and distributions that are fraudulent or patently unfair. An unjust prenup that leaves one party out in the cold is likely to be thrown out by the Court.
Our experienced family solicitors have a wealth of experience in drafting legally robust and effective prenuptial agreements. With our help, you can have peace of mind knowing that, if the worst comes to worst, you have the financial support and certainty you need.
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