Getting married is one of life’s most exciting milestones, but with that excitement can come questions about your financial future. While no one likes to think about the possibility of a relationship ending in divorce, prenuptial agreements (often referred to as “prenups”) are a useful tool for protecting assets and making sure everything is clear before the big day.
If you’re considering a prenuptial agreement, or just curious about what they involve, here’s an introduction to what you need to know.
Are Prenuptial Agreements Binding in England?
Prenuptial agreements are not automatically binding in England, but they can carry significant weight if there is a financial dispute during divorce provided that certain criteria is met.
What Criteria Should Be Met When Preparing a Prenuptial Agreement?
To strengthen the chances of a prenuptial agreement being followed if there is a financial dispute during divorce, here are some essential criteria to keep in mind:
- Full Financial Disclosure: Both people must fully disclose their assets, income, and liabilities before the agreement is prepared. Hiding information could result in the agreement not being followed during divorce.
- Independent Legal Advice: Both people should receive independent legal advice before signing the agreement. This ensures that both individuals understand the implications of the prenup, whether the terms would be considered fair and what they might be giving up if the agreement is signed.
- Timing: A prenuptial agreement should be signed well in advance of the wedding. Signing it last minute can raise concerns that the agreement wasn’t entered into freely or with proper consideration. We would usually recommend that an agreement is signed at least 28 days before the wedding day.
- Fairness: The terms of the agreement must be within a band of what a Court would consider to be fair. If for example it does not one person’s needs, it is unlikely to be followed by a Court.
- Review Over Time: Provision should be made in the prenup for it to be reviewed periodically or in the event of a change of circumstance.
Who Can Prepare a Prenuptial Agreement?
Creating a prenuptial agreement should be done with the assistance of a family lawyer. Both people should have their own solicitor to ensure that the agreement has the best chance of being followed in the future. This reduces the chance of a dispute later on. We will guide you through the process, providing you advice in relation to the criteria that the prenup should meet to give it the best chance of being upheld, and so that it meets your specific needs.
Should You Get a Prenuptial Agreement?
While a prenuptial agreement isn’t for everyone, it can be very important if you have significant assets or a business interest, or if it’s a second marriage. It’s an opportunity to clarify how financial matters will be handled if the marriage ends.
For anyone wondering whether a prenuptial agreement is right for them, please don’t hesitate to give us a call so we can explore this with you.
Carrie Rudge, Consultant Solicitor.
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