What is a Prenuptial Agreement?

A prenuptial agreement or a prenup as it is more commonly referred to, is a written agreement between a couple prior to their marriage, to outline how their assets will be divided if they were to divorce. This includes, but it not limited to, money, property, inheritance, pensions and debt. Prenups are often put in place when one partner has more or is likely to acquire more than the other.

What is the purpose of a prenuptial agreement?

The key purpose is to provide clarity to couples regarding how their assets would be divided in the unfortunate event of a relationship breakdown in the future. It can provide a peaceful mindset, knowing that the assets and money are secure. It is a way of forward planning, and it can save time and costs in the future.

Are prenuptial agreements legally binding in the UK?

Prenups are not currently legally binding in the UK, however, they can carry significant weight in Court when properly drafted and when certain criteria is met. The Supreme Court has set out three factors that increase the chances of a prenup being upheld in divorce proceedings:

• It must be freely entered into in advance of the marriage
• Both parties must understand the implications of the agreement
• It should not be unfair and hold parties to their agreement in the circumstances prevailing.

What should be included in a prenuptial agreement?

Prenuptial agreements are completely tailored towards each couple and their individual needs. One of the best ways to ensure everything is included is to make a list of all the assets owned, jointly and solely and decide how these would be dealt with in the event of a divorce.

Prenup clauses often include:

• Property
• Inheritance
• Savings held in bank accounts.
• Pensions
• Stocks and shares
• Income
• Any business interests.

What are the advantages and disadvantages of a prenuptial agreement?

A prenup provides couples with a clearer understanding of each other’s assets and finances before tying the knot. One of the biggest advantages is to safeguard assets, particularly those who have significant assets beforehand or are anticipating large inheritances. A prenup can help avoid potential legal battles during a divorce. They can offer flexibility to decide financial terms and they can offer protection against the other’s debts. They can and should be regularly reviewed so can be updated to reflect any changes in circumstances e.g birth of children.

The disadvantages can be a prenup can be seen as distrusting, potentially casting a shadow over a relationship before it’s really begun. Life evolves quickly, especially with the addition of children. A prenup might not always reflect the current situation and so do need to be regularly reviewed and updated which can result in additional costs.

How do I arrange a prenuptial agreement?

For a prenup to have the best chance of being upheld by the court, we suggest you:

• Both seek independent legal advice.
• Disclose all assets fully.
• Fully understand the agreement and ensure there is no duress for either party to sign.
• Have the agreement drawn up by a family law expert.

Our highly experienced family solicitors have the experience to guide you into forming a prenup that is both fair and legally sound. We can offer you personalised advice and tailored support from the initial appointment. Please get in touch by calling us on 01325 281111, emailing family@clarkwillis.co.uk  or you can visit us at www.clarkwillis.com