Am I Wealthy Enough To Need a Prenuptial Agreement?

There is a common misconception that prenuptial agreements are only for the very wealthy, but this is not the case. They can be beneficial for individuals with more modest assets. A prenuptial agreement is useful for any individual entering into a marriage or civil partnership who has assets or expects to generate assets during the marriage. For example, through inheritance or generating savings from income.

What is a prenuptial agreement?

It is a contract entered into by a couple before their marriage or civil partnership setting out how their assets and income should be divided in the event of their divorce or dissolution.

If you are already married, you would need a post-nuptial agreement which has exactly the same effect.

Prenuptial agreements are not automatically enforceable. However, the court is likely to uphold an agreement that is properly prepared and is fair to both parties.

Why would I want a prenuptial agreement?

The agreement is tailored to each couple and it provides clarity as to how their assets and income will be divided in the event of divorce or dissolution. They can help to avoid financial uncertainty and arguments should the relationship break down. They can also be used to retain assets at the end of the marriage. For example, a property brought into the marriage.

You may want a prenuptial in the following scenarios:

•  You have received financial support from your family and wish to ring fence the contribution at the end of the marriage.
• You have been married before and want to pass any assets to your children or family members.
• You have pre-marital assets you wish to retain at the end of the marriage.
• You expect to receive an inheritance or create assets during the marriage.

What can be included in a pre-nuptial agreement?

A prenuptial agreement can make provision for the following:

• Property (matrimonial home and any additional properties)
• Pets
• Money (pension, savings, premium bonds)
• Financial support to one party or any children of the marriage/civil partnership
• Financial obligations during the marriage and responsibilities of each party
• Inheritance
• Debt liability
• If there are children from the previous marriage, information about what they are entitled to.

The process of getting a prenup

Drafting a prenuptial agreement without seeking legal advice is generally not recommended as they need to be carefully drafted in order to maximise the likelihood of a court upholding the agreement. The court would need to take into account that the agreement is fair to both parties and will look at the needs of the parties especially if there are children involved.

It is important for both parties to seek independent legal advice on the document.

A prenuptial agreement should ideally be signed at least 28 days before the wedding or civil partnership.

Both parties should also enter the agreement freely. The parties should exchange financial disclosure in a simple format beforehand. Neither party should be under any duress or any undue influence to consent to the agreement.

It is best to get early advice on whether a prenuptial agreement is right for you, so that it does not interfere with the preparation for the wedding.

What happens if my partner disputes my prenup?

Although not automatically legally binding, the courts have upheld prenuptial agreements which have been properly prepared.

In the recent case of NM v PM, the prenuptial agreement was upheld even though it was disputed by the wife. In this case, three properties were held in the husband’s sole name and they were to be retained by him under the prenuptial agreement.

Despite the wife in this case arguing that one property had become matrimonialised as the family had spent time there and used it as a second family home. The court did not agree with the wife in the case and upheld the prenuptial agreement.

Our approachable and experienced family law team can advise you on the best approach for your situation. Please feel free to contact our specialist family law experts on 0330 822 3451 for more information about prenuptial or post-nuptial agreements or to organise an informal call.