“Are they just for the super-rich?”….. “Will they hold up at Court?” are questions commonly asked. Amelia Harrison, Chartered Legal Executive, helps to clear up some of the myths surrounding prenuptial agreements.
What is a Prenuptial Agreement?
A Prenuptial Agreement commonly referred to as a “prenup” is a legal contract signed by the parties in advance of their marriage which state how assets (money, property and other assets) are owned and are to be divided should the couple divorce.
Parties who wish to enter into a Civil Partnership are able to have a Pre-Civil Partnership Agreement prepared to reflect such terms and outlines what would happen should they seek to dissolve their Civil Partnership.
Who would have one?
There is a general trend of public opinion who believe prenups are just for celebrities or wealthy people. This maybe because over recent years there has been more media attention given to prominent public figures who may have had the benefit of a prenup in their divorce.
In reality, most couples who seek to obtain a prenup are those which have an imbalance of their personal assets or wealth prior to the marriage. They therefore seek to try to protect such wealth for a variety of reasons, potentially to ensure that inheritance is passed to their children, protect business or assets which has taken a significant time to accumulate or protect future wealth whether through inheritance or career achievement.
There is a common presumption that prenups are unromantic and may set a marriage off on the wrong foot, however a recent YouGov survey shows that just under half view prenups as a good idea.
Do I need one?
If you are planning on getting married or entering a Civil Partnership, a prenup should be considered. It maybe that you are seeking to enter a second marriage or a first marriage though later in life and your assets have therefore accumulated over the years.
In essence, prenups should be considered as a protective measure for your assets, whether this be the family home, money, limit debt liability, property or inheritance.
Do they hold up in a Court of Law?
Prenups are not legally binding in England and Wales. They are however certainly given weight when couples seek to resolve their financial issues through the courts. There are a set of criteria which the courts consider when determining whether a prenup should be upheld which includes (but is not limited to) the parties having entered into such an agreement of their own free will, without undue influence or misrepresentation and having a full appreciation of the implications of doing so.
Next Steps….
If you’d like more information, please don’t hesitate to contact me by emailing a.harrison@timms-law.com or call 01283 561531. You can also visit our Family Law section of our website here.
