What is a Pre-Nuptial Agreement?
A pre-nuptial agreement, commonly referred to as a pre-nupis an agreement that couples may choose to enter intobefore before getting married or entering into a civil partnership.
Why choose a Pre-Nuptial Agreement?
Pre-nuptial agreements have gained popularity in recent years as more couples want to have clear boundaries and to protect their finances and assets. Historically, Pre-nuptial agreements were often considered a luxury of the rich and famous but the modern approach to marriage and financial planning has brought these agreements into the mainstream.
Pre-nuptial agreements can provide a clear understanding of how assets should be divided, reducing potential conflicts during a divorce. They can aim to protect family heirlooms, businesses, future inheritances and assets acquired before the marriage as well as outlining responsibility for any debts incurred before or during the marriage. Pre-nuptial agreements are also entered into by those seeking to preserve wealth for children from previous marriages or for other dependents.
Are Pre-Nuptial Agreements legally binding?
While not currently legally binding or automatically enforceable in England and Wales, pre-nuptial agreements carry significant weight if they are carefully and fairly constructed. Here are some factors that should be considered when entering into a pre-nuptial agreement:
- Voluntary Agreement: Both parties must enter the agreement willingly and without any form of coercion.
- Full Disclosure: There must be full and frank disclosure of each party’s financial situation.
- Independent Legal Advice: Both parties should seek independent legal advice to understand the implications of the agreement.
- Fair and Reasonable: The agreement must be fair and reasonable at the time it was made and at the time of the divorce.
- Proper Execution: The agreement should ideally be executed well in advance of the wedding, typically at least 28 days before.
- Regular Review: You should regularly review the agreement once it is entered into, especially if there are significant changes in circumstances, such as the birth of children or substantial changes in financial status. Circumstances can change, and what seemed fair at the time of signing might not be considered fair at the time of divorce.
Not reviewing a pre-nuptial agreement regularly can reduce the weight that the court will attach to the agreement.
Couples considering a prenup should always seek professional legal advice to ensure their agreement is robust, fair, and reflective of their individual circumstances and future needs and to give the agreement as much weight as possible on divorce.
Here at Batt Broadbent Solicitors, we can advise you on your individual circumstances and discuss your specific requirements. Get in touch to talk to us today.