Associate solicitor Rebecca Ledgerwood, in our Family Law team, explains when and why you may want to consider having a Pre-Nuptial or Post-Nuptial Agreement in place.
It is often thought that Pre-Nuptial and Post-Nuptial Agreements are for the ultra-wealthy - but is this actually the case? Should more people be entering into such arrangements?
A prenuptial agreement is entered into between parties who are intending to marry. A post-nuptial agreement is a similar document, but agreed between and signed by the couple after marriage. Together, these documents are known as ‘nuptial agreements.’
The purpose of a nuptial agreement is for the married (or engaged) couple to decide how they would like to deal with their assets, liabilities and income in the event of a divorce.
The Office for National Statistics (ONS) has found that the average age of individuals to marry is rising year-on-year. This means that those getting married increasingly have had the opportunity to acquire wealth, which can be substantial, prior to their marriage. They may be keen to try and protect that wealth in the event of a future divorce, and as a result, nuptial Agreements are becoming more popular with marrying and married couples.
Other reasons why couples may consider concluding a Nuptial Agreement are:
- One of them has an interest in a family business and they or their family may not want this business interest to be available to share in the event of a marriage breakdown.
- Those who meet later in life and may have children from a previous relationship may want to protect their wealth to pass on to their children.
Whilst Nuptial Agreements are not automatically binding in England and Wales, they are usually taken into account as an important factor in resolving finances on divorce – especially if certain criteria are met, including:
- The agreement has been freely entered into by both parties.
- Both parties must have a full understanding of the implications of the agreement.
- Both parties have provided full and frank financial disclosure to one another.
- The agreement must be fair in the circumstances at the time of divorce. This means both parties’ reasonable needs must be met (which is specific to each couple), and particularly those with children. A Nuptial Agreement that says one party is to receive nothing in the event of a divorce is unlikely to be upheld by a court because this would not meet needs.
- Both parties have had independent legal advice as to the implications of the agreement.
- Any Pre-Nuptial Agreement ought to be entered into at least 28 days prior to the date of marriage. It is prudent to start looking to draft an agreement 6 months prior to the date of marriage.
If you wish to explore the options available to you regarding a Nuptial Agreement it is best to contact a family solicitor as early as possible.
This is to ensure that you obtain advice on your situation, what you would like to achieve and how to do so. Ideally a Pre-Nuptial Agreement should be agreed and signed well before the wedding (and as a minimum 28 days before) – therefore obtaining advice early is key.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
