Pre-Marital/Pre-Nuptial Agreements
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Record Each Other's Assets
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Agree Seperataly Owned Property and Finances
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Define How Joint Assets Would be Divided
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Inheritance and Business Interests
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Child Welfare and the Family Home
What are Pre-marital Agreements? ✍
Pre-marital agreements, otherwise known as pre-nuptial agreements or “prenups” are written contracts between two people before marriage (or civil partnership) providing details, should the marriage fail, of how the assets are to be divided.
Pre-marital agreements are a means of protecting pre-marriage assets, and previous family commitments, such as children from a previous marriage. Once you are married, then all your assets become the matrimonial assets. Unless you protect them with a pre-marital agreement, they will be merged together.
A pre-marital agreement sets out each individual's rights in relation to property and assets acquired. A post-nuptial agreement can be made by people who are already married.
Why would I need a Pre-nuptial/Post-nuptial agreement?
Once a couple marry, their possessions, money and property are placed into a single financial pot that under matrimonial law are to be equally divided in a divorce situation.
A “Prenup” can offer a certain amount of protection to both parties in the case of a relationship breakdown.
Individuals who are re-marrying may require a measure of certainty after having experienced a difficult divorce. Perhaps there are children from a previous marriage that need to be financial supported, there also may be a requirement now or in the future by inheritance provisions.
There may be complications of a 50/50 division of assets should the case arise. Business interests may be such that one party may need to ensure control is retained.
One of the couple may have debt that needs consideration that could be dealt with by the incorporation of a “debt clause” in the agreement. On the other hand there may be inheritance that has been received or is expected requiring protection.
Money can be an emotive subject in relationships, particularly when there are differences in attitudes towards spending. Agreements can be used to determine day to day accountability, such as how the mortgage/rent is paid. How bills or debts are paid, whether this will be through a joint bank account.
Personal property such as vehicles or household contents, if paid for jointly, in the event of a relationship split, can be decided on how they are divided. Consideration may be needed to determine what would happen to animals and pets.
What is needed to make a valid prenup? ✔✘
It is important to note that pre-marital agreements are not legally enforceable in England and Wales. However when prepared by a qualified solicitor to comply with UK law, they are more likely to be upheld by a court. This is as a result of a landmark decision in the case of Radmacher v. Granatino in October 2010.
Key issues required for validation:
- All assets are disclosed with inventories/financial statements being provided. ☑
- The agreement is completely understood by both parties. ☑
- The contract must be drawn up by a solicitor. ☑
- The couple must be independently legally advised. ☑
- The agreement must demonstrate a certain amount of fairness, particularly if one of the party is bringing substantially more to the marriage. ☑
- There must be certainty that no undue pressure has been applied in the signing of the contract. ☑
- It is recommended that an agreement is singed at least a month before the wedding day, as proof of intent and that a reasonable time for re-consideration has passed. ☑
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