Pre-nuptial agreements explained
What is a pre-nuptial agreement?
A pre-nuptial agreement (often simply shortened to pre-nup) is a document that is signed by a couple prior to marriage. The guidelines for pre-nuptial agreements are typically straightforward.
If a couple separates or divorces, a pre-nuptial agreement sets out their rights to property, income, debts and other assets which they have acquired together, individually, or have brought into their relationship.
A pre-nuptial agreement form can help to provide clarity and reduce the potential for conflict during a separation.
How do you get a pre-nuptial agreement?
Creating a pre-nuptial agreement is an option for most couples, not just for the rich and famous. The first step would be to speak to a specialist pre-nup solicitor who has previous experience in drafting these types of pre-nuptial agreements.
Legal advice for pre-nuptial agreements is an essential requirement if they are to be considered valid. When assessing your situation and creating a pre-nuptial agreement, your solicitor will consider various issues, such your assets, your financial needs and whether you have any children.
Once your solicitors have drawn up a pre-nuptial agreement template, your partner’s solicitor will review the document and ensure that the terms are fully understood.
Why should I get a pre-nuptial agreement?
There are a number of benefits to pre-nuptial agreements. Signing an agreement means that you:
- Will have greater certainty over your finances moving forward
- Protect the interests of your children
- Avoid conflict and disputes over your finances
- Protect your important assets
How much does a pre-nuptial agreement cost?
Pre-nuptial agreement costs will depend on the complexity of your situation. Our pre-nup solicitors will be transparent about the potential fees you will need to pay to draft your pre-nuptial agreement from the outset of your case, meaning there will be no unwelcome surprises.
What happens if you don’t get a pre-nup?
The starting point for division of assets on divorce is that the combined marital assets are divided equally during divorce and that assumption grows in strength, the longer you are married and the more your assets are mingled. Without a pre-nup you risk the possibility of ending up with a financial settlement that you consider unfair.
Having a pre-nuptial agreement can also make the process of getting divorced much simpler and less stressful, as much will already have been agreed. You are less likely to need to go to court to resolve the financial claims you have against each other.
Are pre-nuptial agreements legally binding?
Pre-nuptial agreement laws should be taken into consideration. Pre-nups are not automatically legally binding, but are likely to be upheld by the family court if they meet the necessary criteria and meet the financial needs of both parties.
Is a pre-nup still valid if you have children?
The agreement should account for foreseeable future changes and make provision for children if this is something you and your partner are planning. If it does not, and the terms of the order don’t meet the needs of the partner and children then the terms may be varied by the family court.
What should be included in a pre-nuptial agreement?
Your assets should be identified as ‘separate’ or ‘matrimonial’ property and arrangements should be made for what should happen to both upon divorce. Your prenup should also be future proof and make provision for children, retirement.
You and your spouse may also want to include a ‘sunset clause’ if your marriage goes the distance and you want the agreement to expire.
Is it too late to get a pre-nup after marriage?
Instead, you and your spouse can enter into a post-nuptial agreement which offers the same protections.
A post-nuptial agreement may be worth considering if your circumstances have changed significantly since you got married e.g. you have had children, bought a home, received a substantial inheritance or started a business.
What are the rights of a common law spouse?
The rights of a common law marriage are a myth. Unmarried couples have no automatic legal rights with regard to each other’s property, savings or other assets and no automatic right to financial support, other than for child maintenance where appropriate.
This means if you separate from your unmarried partner, you may have no right to a financial settlement or any kind of personal maintenance, unless you have a cohabitation agreement in place that makes provision for this.
If you live in a property that is in your ex-partner’s name, you may also have no right to stay there after you have separated.
For this reason, we strongly recommend that anyone living with their partner creates a cohabitation agreement, especially if you are living in a property that is in one person's name, one of you is financially dependent on the other and/or you have children together.
Pre-nuptial agreements insights from Harrowells