What is a Prenuptial Agreement?

Prenuptial agreements or ‘prenups’ can be a daunting subject for couples planning to get married, not least because it raises the issue that the marriage might not last. However, they can offer strong protection for your future financial security and remove the potential for unnecessary tension and conflict over money.

Before making a prenup, it is important to fully consider what it means for you and what you need to be aware of. If you have been asked to sign a prenup by your partner, then what should you look out for in a draft agreement? If you are considering drafting a prenup, then what do you need to include?

There are a number of reasons that a party may want to enter into a prenuptial agreement. These include:

• They may have been through a difficult divorce or separation before and do not want to go through that experience again.
• It may be that they have significant assets owned prior to the marriage, including inheritances or family trusts, that they wish to protect.
• There may be pressure from family members particularly where those family members plan to or have provided money, property or business assets.
• Sometimes, the less wealthy party to a relationship may suggest a prenuptial agreement to provide an assurance that the marriage is not just about the money.

Whatever the reasons, it is important to know how prenuptial agreements work and what they mean for your future before signing. In this blog, we cover some of the key points you need to know, but it is essential to seek specialist legal advice from an experienced prenuptial agreements solicitor before doing anything.

What Can a Prenuptial Agreement Protect/Cover?

Prenuptial agreements are much like an insurance policy – whilst the parties entering into it hope they will never have to rely on the agreement, it provides some reassurance if a breakup does happen.

For couples who decide to enter into a prenuptial agreement, the agreement will set out what the couple intend to happen to their money and property if the marriage or civil partnership were to come to an end.

Are Prenuptial Agreements Legally Binding in the UK?

In England and Wales, prenuptial agreements are not strictly binding in the event of a later breakdown of a marriage or civil partnership.  However, as long as certain criteria are met prior to the agreement being entered into, it is likely that it will be upheld by the court.

These criteria include:

• That the agreement has been entered into freely by both parties without any undue pressure to sign
• The agreement is entered into in good time before the wedding
• The parties have each made a full disclosure about their financial circumstances to the other party
• The agreement is fair to both parties
• Both parties to the agreement have received independent legal advice about its terms
• The agreement includes provisions for any children, including children who have not been born yet

Even though prenuptial agreements are not always binding, you should not enter into an agreement unless you intend to be bound by its terms.

Can a Prenuptial Agreement be Entered Into After Marriage?

A prenuptial agreement must be entered into before a marriage takes place.  However, if a married couple wish to enter into an agreement to regulate their financial arrangements, both during their marriage and after separation, they may enter into a postnuptial agreement or ‘postnup’.

What are the Pros and Cons of Entering Into a Prenup?

There are many advantages to having a prenuptial agreement. It provides a couple with a clear idea of what will happen if the marriage breaks down, provided that it is entered into in accordance with the necessary criteria.

In the event of a separation, this may mean that parties are able to keep conflict to a minimum which is particularly important if there are children. The cost of a prenuptial agreement is likely to be significantly less than acrimonious divorce proceedings.

Over the course of a marriage, a couple’s circumstances can change. In the event of a dispute, the court will look at your circumstances as they are at that point in time.  What may have been fair at the time of a prenuptial agreement may not be considered fair at the time of separation, if there has been a significant change in circumstances, for example one party has suffered ill health.

For this reason, it is sensible to include provision in a prenuptial agreement for there to be either regular reviews, or reviews in the event of certain events occurring such as one party’s ill health.

Contact our Prenuptial Agreement Solicitors in Canterbury, Kent

If you are considering entering into a prenuptial agreement or have any other questions related to this issue, please do not hesitate to get in touch. We can provide you with guidance and advice which will suit your individual circumstances. We will listen to you, we will advise you and we will guide you through the process.

With our experience, we can make sure you get a fair agreement in place that you are both happy with and that meets the legal requirements to be considered by a court.

To get in touch with our prenuptial agreement solicitors in Canterbury, please call us on 01227 813400, email canterburycs@boysandmaughan.co.uk or fill in our simple online enquiry form to request a call back.

Disclaimer: The contents of this article are not designed to constitute legal advice and are for information only.