Recent research by the Marriage Foundation has revealed that as many as 20% of young couples are entering into Pre-nuptial Agreements before getting married.
What’s behind this increase?
Pre-nuptial agreements were once thought of as something for the super-rich, looking to protect their assets and wealth from claims by their spouse should their marriages end in divorce.
In more recent times, they’ve become more common for couples marrying for a second time who’ve been through the divorce process before and wish to have framework to avoid or time limit claims should their marriages end again. Others, who marry in later life, wish to retain money or assets in one side of the family, perhaps for their own children.
Some commentators have said that the rise takes this last point one step further. The “bank of mum and dad” is often raided now to enable adult children to buy a home. Also, some wealthy parents use gifts to their children as a means of tax planning for themselves. It’s thought that the parents are insisting that before doing so or before their child marries, that there is an Agreement to ensure that the gift remains within the family should their child separate and divorce. It’s also much more common now for couples to keep their financial arrangements separate, rather than share bank accounts as they traditionally did.
There might be another factor too. Celebrities and influencers regularly post about having Agreements, whether before their weddings or when they separate. Perhaps Pre-nuptial Agreements have become fashionable or aspirational, if not yet normal?
Are Pre-nuptial agreements worth it?
Pre-nuptial Agreements are drawn up before a marriage to dictate how the couple will deal with and divide their assets and resources should they separate and divorce.
As a matter of Law they’re not strictly legally binding. However, for 15 or so years now the Family Courts expect Pre-nuptial Agreement to be upheld, if challenged, where they have been entered into freely and the necessary formalities complied with. Since then the popularity has increased and continues to so. It looks like as society changes and the needs of families change too, then people are seeking solutions that reflect those needs and their own values.
The enforceability of Pre-nuptial Agreements are is one area that is being considered as part of a wider review of the Law that applies in respect of financial matter on separation and divorce, that is due next year. It may be then that Agreements entered openly and fairly will automatically be legally binding, unless there are issues of abuse or the protection of children or vulnerable adults that mean it would be unjust to do so.
Further reading
One in five weddings begin with a prenup - Marriage Foundation
How we can help
If you and your partner would like to make a Pre-nuptial or Post-nuptial agreement, please contact any of the private family law team on freephone 0800 011 6666 or via email at legal@timms-law.com. Alternatively, further information can be found on our website at Prenuptial Agreements & Postnuptial Agreements - Timms Solicitors
