During the exciting period a couple decide to marry, many do not consider the potential financial consequences. The subject of a prenuptial agreement is not the most romantic to be discussed, as the ultimate intention when they marry is that the relationship will last.

What is a prenuptial agreement?

A prenuptial agreement also known as a prenup, is a contract entered into by two parties prior to their marriage. A prenup outlines an agreed-upon settlement involving property and other assets in the unfortunate event the marriage ends. A prenuptial agreement must have a period of at least 21 days between the signing of the agreement and the wedding.

Are there advantages to having a prenup?

There are numerous reasons why a couple would like a prenuptial agreement to be in place. Reasons are:

• Prenups can avoid uncertainty and arguments if the relationship ends
• If money or assets are inherited, prenuptial agreements provide a type of protection to ensure they stay within the given family.
• Protects assets for any children from a previous relationship.
• It protects you from being held accountable for any debts incurred by your partner.
• They ensure you keep control of a business 

What happens if we don’t have a prenuptial agreement?

In the absence of a prenuptial agreement, the matter would be referred to the Court for determination and in England and Wales the Court has many choices when deciding how to share out assets during a divorce. There are no set rules.  All assets, whether obtained before the marriage, during or even after you have separated; can result in being shared out by the Court.

Are prenuptial agreements legally binding?

Prenups are not legally binding in the UK, though the court will take them into consideration when deciding on your divorce settlement.  The Court will consider the following points when deciding if the agreement should stand:

• Both parties must have obtained legal advice independent of each other. 
• The couple declared honest financial disclosure and was fully aware of the others financial position
• The couple signed the agreement willingly without being pressured
• The terms of the agreement should be fair, if it is not fair the court would be unlikely to endorse it
• Consider future changes in circumstances and include provisions for the agreement to be reviewed later.

Can I take out a prenup after we’re married?

Prenuptial agreements can only be made before your wedding or civil partnership. It is possible for a similar arrangement once you are married called a postnuptial agreement. This can be put into place at any time during your marriage.

Are you considering a prenuptial agreement?

For more information about prenuptial agreement, call us on 0161 798 9000.