When to consider a prenuptial agreement

Marriage is an expensive business, but if it goes wrong so too is divorce and whilst it may not be the most romantic of notions and plans, both can be mitigated through a prenuptial agreement.

Oscar Wilde once said that ‘marriage is the triumph of imagination over intelligence’ but it would seem that prenup and planning ahead when entering into the formality of marriage is becoming more and more the norm and the intelligent thing to do.

Why are prenuptial agreements important?

Later life marriages, blended families and second marriages bring with them a focus on money and financial planning which should not be ignored, says Solicitor and Head of Family Law at Pearson, Emma Kendall.

“The increase in interest in prenuptial agreements looks to either protect inherited family wealth, or to manage the money perhaps made at an earlier stage in life, or indeed make provision for the first family in the case of remarriage,” says Emma.

“With many couples now having a second marriage the protection of assets for children born in their first marriage is a major consideration moving forward.  There is also more thought being given to protecting assets built up prior to the relationship, so all parties enter the marriage aware of the financial implications should it end, not the most romantic option, but definitely a sensible one,” she says.

“We read headlines about prenups now not being solely for the very wealthy or the celebrity culture, and of course we have clients who, for whatever reason, seek advice on prenuptial agreements, my advice for anyone is to plan ahead for any eventuality and pre-nups are a practical tool to do just that.”

Research from the Bank of England suggests more couples are opting for weekday weddings to save money, but then again not thinking about the implications of financial planning leading up to and after the wedding.

“Oscar Wilde also added that ‘second marriage is the triumph of hope over experience,’ and I would hope that financial planning for a first or second marriage is always a good thing and in my experience the consideration of a prenup is certainly no longer the preserve of the very wealthy,” adds Emma.

What is a prenup?

A prenup is a bespoke document and is a formal written agreement signed by both parties before their wedding.  Full disclosure must be made at the time of all assets and wealth.

It is always advisable to seek advice from a UK family law solicitor who has experience in this area of the law.

Are prenuptial agreements legally binding in the UK?

Your solicitor should be able to advise you in respect of the formalities to ensure the agreement is legally binding.

“It is essentially a contract and both parties should get independent legal advice,” says Emma Kendall. “For a prenup to have legal weight it needs to be shown that both sides knew what they were signing, which is why the parties need to get solicitors involved.”

“It is also advisable to get this sorted in advance of the wedding and it ought to be signed at least a month before the wedding, so that neither party feels rushed, knows what it outlines and does not feel pressure or under duress to sign,” adds Emma.

“The Court will look at the prenuptial agreement in the event of a divorce and will be led by the intention of the prenup unless there are needs based circumstances which dictate otherwise”.

The prenup can also be about much more than the protection of the wealthier party, it can reassure the other partner that they will have some financial security in the future (if this is built into the prenuptial agreement).

Postnuptial Agreements

As circumstances change or if the idea of a prenup is not palatable then later a postnuptial agreement after marriage can be drafted to deal with all financial, business or property aspects of the partnership should you decide to separate.

How can we help?

If you need legal advice on a postnuptial or prenuptial agreement our expert family solicitors can help. For all aspects of family law contact the Pearson family department on 0161 785 3500 or email enquiries@pearsonlegal.co.uk

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Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.