A prenuptial agreement, or prenup, is a contract made between you and your partner before marriage that outlines how your assets and finances will be divided in the event of divorce or separation. You can also agree on where any future divorce case will be filed.
Contrary to popular belief, prenups are not just for the wealthy; they can help any couple by offering clarity and protection during uncertain times.
Do You Need a Prenup?
A prenup can be a smart choice for many couples, not just those with significant wealth. If you or your partner have substantial assets, own a business, have children from a previous relationship, or stand to receive a gift of any inheritance, a prenup can provide clarity and protection and seek to ring fence any specific sums or assets that you wish to protect.
When should you sign the Prenup?
You should sign the prenup at least 28 days before your wedding, and it’s crucial for each party to get independent legal advice from a family law specialist solicitor.
Do Prenups Hold Up in Court?
In the UK, prenuptial agreements are not legally binding, but the landmark case Radmacher (formerly Granatino) -V- Granatino [2010] UKSC 42 set a new standard, that courts should honour prenups if both parties enter into it willingly and understand what they are signing.
Since then, there has been a moved towards courts increasingly recognising and honouring prenups, provided they meet the following criteria set out in various cases.
· You and your partner entered into the agreement of your own free will, without any undue influence.
· The agreement was signed 28 days before the wedding.
· Both you and your partner made full financial disclosure which is annexed to the agreement.
· The agreement clearly distinguishes between matrimonial and non-matrimonial assets.
· Both parties obtained independent legal advice
· The agreement is fair and reasonable
· Both parties’ financial needs will be adequately met in the event of divorce.
· The agreement does not negatively affect the needs of any children of the marriage.
What can you include in a Prenup?
It is essential for you and your partner to engage in constructive and transparent communication when negotiating a prenup. Both of you must seek independent legal advice to ensure your interests are adequately represented and to understand what you are agreeing to.
Customarily, prenuptial agreements are bespoke documents. However, they typically include, but are not limited to, asset division, debt obligations, spousal support, inherited assets, business interests, property ownership, financial responsibilities, dispute resolution procedures, review clauses, and arrangements for the payment of legal fees.
Do I need to review the Prenup?
In short, yes.
Reviewing the prenuptial agreement is extremally important to ensure that it remains fair and relevant to your circumstances as they change throughout your marriage.
Life events like changing careers, securing new assets, developing serious disability, or having children can affect the agreement. Reviewing the agreement can make it easier to enforce in court. It shows that both you and your partner are keeping an eye on things and ensuring the agreement still works for both of you This can help show the court that the agreement is fair and agreed upon by both parties.
What if I am already married?
If you and your partner are already married, whilst you cannot enter into a prenup – you can still discuss your wishes and enter into a post-nuptial agreement (further blog to follow!)
Conclusion:
Prenuptial agreements play a crucial role in modern relationships, offering clarity and protection in an uncertain world. While they are not a one-size-fits-all solution, prenups can provide peace of mind for couples entering marriage. Given the complexity of family law and the nuances of prenuptial agreements, seeking professional legal advice is paramount.
For personalised guidance please contact Satvinder Sokhal, Consultant Solicitor by email on ssokhal@jpclaw.co.uk, telephone 020 7644 7284 to schedule a consultation today. Our dedicated team of family solicitors can provide tailored guidance, draft, or review a prenuptial agreement, and ensure compliance with legal requirements. If you are already married and you are considering a post nuptial agreement, this is something we can also offer you advice on.
