Pre-nuptial Agreements

• to set out how you will manage the finances during the marriage.
• to set out what will happen to the finances in the event of a divorce or separation.
• to protect any inherited wealth or property acquired by one of you before the marriage.

A Pre-Nup can therefore be helpful in any partnership, but there are some circumstances when a Pre-nup isn’t just helpful, it really should be seen as essential:

• When you have an interest in a family business.
• When you’re bringing assets to the marriage, whether by an inheritance or family gift etc.
• When you’ve previously been married – particularly if you have children from previous relationships.

Agreeing a prenup also gives you and your partner the opportunity to discuss how you will manage your finances during the marriage. Prenup‘s are often seen as favouring the wealthier spouse but they can provide certainty and help both parties feel more secure where there is financial disparity.

Perhaps the main advantage of a prenup is that it allows you to protect an asset in the event of the breakdown of the marriage. By identifying assets as non-matrimonial they are effectively ring fenced. This could be inherited wealth, an interest in a family business or property owned prior to the marriage.

A properly drafted a prenup should enable you and your partner to protect your assets whilst ensuring that in the event of a breakdown both of you are fairly treated.

Whilst pre-nup‘s aren’t binding on the courts in the event of a divorce the court will attach appropriate weight to them if they have been properly drawn up and they meet certain requirements:

• they must be freely entered into (any duress or undue influence will render the agreement void)
• The parties must have a full understanding of the implications of the agreement – which is why a full exchange of financial information is needed
• The terms of the agreement must be fair and address the needs of the parties at the time of the split.
• The prenuptial agreement also needs to be in the form of a deed and each party must have taken independent legal advice.

If all these requirements are met the Court will take heed of the Agreement.

So, it’s difficult to see why everyone doesn’t have one. They can add transparency and strength to a relationship and open up the lines of communication and, in the event of a breakdown can bring a degree of clarity and certainty, and significantly reduce costs and acrimony.