A prenuptial agreement (or ‘prenup’) in the UK is a legal document drawn up between a couple before their marriage to outline how their assets will be divided between them in the event of a separation. Assets, including assets, debts, and income, are usually covered in a typical prenuptial agreement to help couples avoid any financial surprises if the relationship were to fail in the future.
Prenuptial agreements are more likely to be put in place when one partner already has, or is likely to obtain, more resources than the other. For example, those with a large inheritance, property owners, business owners, or couples who are marrying later in life or who may be entering into a second marriage.
What is the resolution of a prenuptial agreement?
The key resolution of a prenuptial agreement is to deliver clarity for couples around how their properties will be separated in the event of a relationship breakdown, and the exact details vary depending on your case.
Typical prenuptial agreement terms cover:
-Protecting children’s inheritance or specific assets
-Protecting inherited money, assets, or savings
-Giving you both a say in how assets will be divided if you decide to divorce
-Allowing one partner to retain full control of business ownership
-Protecting you from your partner’s debt
Why should I have a prenuptial agreement?
You should consider entering into a prenuptial agreement (often called a prenup) before you get married if you want to control how your assets and finances will be dealt with during your marriage and what will happen to them if you get split up.
If you’re entering into a civil partnership, you can have a pre-registration arrangement drawn up in the same way.
A prenup can benefit you by protecting your or your spouse’s wealth in the event of a divorce. Prenups offer some certainty in situations where you would prefer to agree in advance on the distribution of your assets upon divorce rather than leave it to the discretion of the courts.
What should be included in a prenuptial agreement?
Prenuptial agreements are put in place to protect a variety of assets and are entirely tailored to your and your partner’s needs.
Typically, they will include an inventory of all of your assets as well as specifics on how you both want them to be cared for throughout your marriage and how they will be divided if your relationship ends. If you do not want your assets to be divided between you and your partner if you divorce in the future, include them in your prenup.
Prenuptial agreement clauses usually include:
-Property held in your sole name or in shared names
-Savings held in bank accounts
-Premium bonds
-Inheritance
-Stocks and shares
-Pension pots
-Income
-Business interests
One of the best places to start when producing a prenup is to make a list of all the possessions you own, both solely and jointly, and then choose how you would like them to be dealt with in the event of a separation.
When signing a prenup, you will be able to agree on whether one partner retains the assets, whether you will divide them, and what percentage each of them will receive. A prenuptial agreement may prevent your partner from automatically receiving a share of your assets in any divorce settlement.
What cannot be contained within a prenup?
Although premarital agreements can cover a wide variety of assets, there are strict rules on what can and cannot be included. If these factors are not taken into account when signing a prenuptial agreement, the agreement may not be taken seriously in court.
The following issues cannot be included in a prenuptial agreement:
-Child arrangements, including visits, religious upbringing, and education
-Child support
-Personal matters
-Illegal or unfair matters
-Lifestyle matters
How do I make a prenuptial agreement?
To increase the probability that your prenup will be reviewed by the court, you must:
-have the prenuptial agreement drawn up by a fit family law expert
-both search for independent legal advice.
-fully comprehend the agreement and agree to it willingly.
-disclose all assets and possessions fully.
How long does a prenuptial agreement last?
A prenup is a contract between you and your partner that will last for the full period of your marriage.
Are prenuptial agreements legally binding in the UK?
While prenups are not currently legally binding in the UK, they are becoming more and more acknowledged by the courts as proof of a couple’s purposes should they wish to divorce in the future.
