Making sense of the prenuptial agreement
We appreciate that having a prenuptial agreement, otherwise known as a prenup, isn’t for everyone. But for some couples about to marry or enter a civil partnership, a prenuptial agreement provides peace of mind should their relationship sadly break down.
Why are prenups on the rise?
Prenuptial agreements are becoming increasingly popular as couples become more aware of both the financial and emotional cost of getting divorced.
It may be that you’ve been married before and have children from a previous marriage to think about. Or maybe you’ve met your partner slightly later in life and one of you have financial assets you would like to protect.
The most common reasons for having a prenup drawn up are:
- Protection of inherited or family wealth or where there is a difference in wealth between a couple
- Where one or both parties want to preserve certain assets for their children from a previous relationship
- Where there are shareholders agreements in place at a private company
Is a prenuptial agreement right for you and your partner?
In many cases, having a prenuptial agreement makes perfect sense and can be seen as part of the process of joining lives with the person you love.
Most of our clients who have entered into prenuptial agreements do so to gain:
On how their financial affairs will be handled during the marriage. If drawn up correctly, a prenup can prove helpful for couples looking for complete transparency on how their finances will work during their marriage.
Since it allows a couple to formally agree on how their assets should be divided if their marriage or civil partnership breaks down.
To help safeguard inherited assets or pre-marital wealth from financial claims made by the other party during a divorce.
How legally binding are prenuptial agreements?
Prenuptial agreements are not recognised in England by statute. However, there have been many cases where judges have honoured the terms of prenuptial agreements when deciding how assets should be divided.
These cases have created a fairness test of sorts. Although there is no absolute certainty, cases have a greater chance of being upheld if:
- The agreement can be shown to have been freely entered into
- Both parties, at the time of signing, understood the implications of the agreement
- It is fair to hold the parties to the agreement at the time of the divorce
That’s why it’s important to obtain the right legal advice so that the agreement is clear, fair, and accurately reflects the wishes of both you and your partner.
How can Burnett Barker Solicitors help?
Our family law solicitors will help you decide whether a prenuptial agreement is right for you and what terms should be included.
Since prenups can be delicate in nature, we take a tactful and well-considered approach. This is so that both you and your partner feel satisfied with the agreement.
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