A prenuptial agreement (often referred to as a prenup) is a document that couples sign before marriage to clarify their respective financial rights and obligations.
An effective prenup in the UK should cover property, debts, income, and assets acquired individually or brought into the relationship by either party.
Dividing finances after a divorce can be complex and contentious. Prenups help couples establish their positions in case of a breakup and can prevent costly litigation.
It is wise for couples considering marriage to assess whether a prenup is necessary. Our expert family law solicitors can provide tailored advice on this matter.
What does a prenup do?
The concept of a prenup is straightforward on paper.
After marriage, any assets brought into the relationship become matrimonial. Without specific protection, these assets are pooled, allowing either party to claim them during a divorce.
A prenup outlines how these assets will be divided upon divorce, aiming to avoid contentious and costly litigation.
Prenups also shield one spouse from liability for the other’s debts.
Each prenup is unique, tailored to the couple’s circumstances. It can safeguard any agreed-upon assets.
While there are no strict exclusions, courts focus on items relevant to the final financial settlement.
How does a prenup work?
A prenuptial agreement is a document that both partners in a relationship review and sign before marriage. It should clearly outline arrangements for specific assets and may also address matters like child or spousal maintenance.
In the event of divorce, the prenup’s terms take effect, reducing potential confusion or conflict.
Although prenups are not legally binding like court orders, courts regard them seriously. If disputes arise during divorce proceedings, courts assess various factors, such as:
- Whether both parties received independent legal advice
- Whether both parties understood the terms of the prenup
- If full financial disclosure was provided by both parties,
- If the prenup is reasonable and fair
- There is no suggestion of duress, fraud or mistake
To ensure that a prenup meets these criteria, it’s wise to periodically review its terms and make any necessary adjustments using a postnuptial agreement (discussed below).
Similarly, prenuptial agreements are also applicable to civil partnerships, where they are referred to as pre-civil partnership agreements or pre-registration agreements.
Should I get a prenup?
There is a common misconception that prenups are only suitable for the wealthy or high-profile individuals with significant financial disparities. However, this couldn’t be further from the truth. Prenups are relevant for many couples, especially those with inherited assets, family businesses, or property acquired with family assistance. They are also beneficial for couples marrying later in life or entering into second marriages with children from previous relationships.
Although not the most romantic concept, prenups are highly practical and can prevent significant disruption in the future. By streamlining the divorce process and reducing potential conflicts, prenups can also minimise the impact on children’s lives.
The costs associated with creating a prenup typically include drafting the agreement and providing advice on its terms and enforceability.
How do I get a prenup?
The most crucial step to take when considering a prenup is to consult with a solicitor experienced in these agreements.
Both you and your partner must receive independent legal advice before signing a prenup. However, this consultation should go beyond mere formality. Our expert family law solicitors can objectively assess your situation and priorities, as well as those of your partner.
After considering various factors, including your current assets, earning potential, and the needs of any children, we can draft a customised prenup for review and signature by your partner.
It’s generally recommended to finalise a prenup at least 28 days before your planned wedding date. This allows adequate time for legal advice to be received by both parties, ensuring that neither feels pressured into agreeing to terms that may not be in their best interests.
Can I write my own prenup?
We often receive inquiries from individuals wondering whether they can save time and money by creating their own prenup without seeking legal advice.
The purpose of a prenup is to establish in advance how assets will be divided in the event of a future divorce. If a prenup is scrutinised by the courts, they will assess how it was drafted. A prenup must be drafted in a specific manner to carry weight with the courts. Both parties receiving independent legal advice can significantly impact whether a prenup is upheld or disregarded by the court. Involving a solicitor also helps demonstrate to the court that various factors were considered, such as whether both parties disclosed all assets and if either party was under duress when signing the prenup.
A self-drafted prenup is unlikely to achieve the desired results and could lead to a false sense of security.
Can I get a prenup after marriage?
Yes, postnuptial agreements (post-nups) are available not only to couples who are yet to get married but also to those who are already married or in a civil partnership.
Post-nups function similarly to pre-nups. They are created to establish the financial arrangements that should be implemented in the event of a divorce or separation, following a similar process used for drafting prenuptial agreements.
The primary difference between prenups and post-nups is straightforward: prenups are drafted before marriage, while post-nups are drafted after marriage.
If you are already married and have a prenup in place, it’s advisable to regularly review its terms. If you need to make any changes, you will need to execute a new post.
It’s especially crucial to sign a new prenup if there have been significant changes in your circumstances or your partner’s circumstances since the prenup was initially signed.
Our prenup solicitors are here to help
For personalised guidance on your situation and to determine if a prenup is suitable for you, our team is here to assist. We understand that prenups can be sensitive, and we’re available to offer clear and straightforward advice that helps you fully grasp your position.
