Our Family Solicitor’s advice on how a prenuptial agreement in the UK can help protect your assets.
Who needs a prenuptial agreement?
Prenuptial Agreements are becoming more popular in the UK with approximately 1 in 5 marriages now including one. Although many believe that a prenuptial agreement takes the romance out of a relationship and traditionally is something that is only relevant to the wealthy, this is not always the case. Many couples are now turning to prenuptial agreements (pre-nups) as a way of protecting their assets, avoiding costly disputes and planning for their future. While many view a ‘prenup’ as a ticking time bomb on a successful relationship, it can actually be of great benefit for couples to consider their matrimonial assets, great or small, and create a unified plan for how these will be dealt with before getting married.
We at Starck Uberoi often recommend that our clients consider a prenuptial agreement not only to protect their assets, but also to promote honest discussions about the party’s financial situation, consider their plans for the future and prevent any lengthy and costly legal proceedings should the parties separate.
What is a prenuptial agreement?
A prenuptial agreement is simply an agreement made between two parties before they get married, which declares how they wish for assets to be divided should they ever get a divorce.
What does a prenuptial agreement do?
Prenuptial agreements primarily aim to protect each party’s assets, from being claimed by the other, including, but not limited to:
- Separate Property of the parties
- Each party’s share of any Joint Property
- Finances in relation to any current child(ren) of the parties and / or any future child(ren)
- Any future inheritance
- Business interests
- Current savings, investments and ISA’s
- Outstanding debts / liabilities
Are Prenuptial agreements legally binding?
Following the landmark ruling in Radmacher v. Granatino in 2010, the Supreme Court recognised prenuptial agreements for the first time. Whilst prenuptial agreements are not legally binding, they are persuasive which means that the Court will take into consideration any prenuptial agreement as evidence of what the party’s intentions were at the time of execution. This means that providing the agreement has been properly executed (please see below for details) the Court has the discretion to consider the terms of the agreement and can in some instances declare that they are enforceable.
Additionally, there are ways to ensure that the prenuptial agreement is ‘more persuasive’ such as including review dates after significant life events and updating any financial disclosure in the event of any changes.
What are the things to consider before entering into a prenuptial agreement?
To make the agreement valid, each party will have to provide full financial disclosure containing details of all bank accounts; property; trust interests; liabilities; business interests; possessions valued over £500.00; pension value; etc.
We advise all of our clients to review the prenup following any major life event such as the birth of a child or the purchase of any property. Saving this, we also suggest that the agreement be reviewed in any event every 5 years to ensure that the agreement does not become outdated.
If for example, a couple enter into a prenuptial agreement, then marry and have children without ever reviewing or updating the prenup, it is likely a Court will not allow the prenup to carry significant weight. This is because the parties circumstances have changed, and given that they have not reviewed the prenup, it may now be appropriate for a new agreement to be entered into.
How long does the process take?
In order to prevent either party from alleging that they signed the agreement under ‘duress’ or that they were coerced into the agreement, any prenup must be executed at least 28 days before the wedding.
For similar reasons, each party must have their own legal representation. This means that for example, if we were representing you, then your partner much instruct a firm who is completely independent from Starck Uberoi Solicitors. This means that once we are instructed, have drafted the agreement and advised you on the same, a copy of the agreement will be sent to your fiancées Solicitor who will advise them on its contents. Following this, the Solicitor acting for your fiancée may recommend some amendments and it is only when both parties are completely happy with the agreement will the prenup be executed.
Starck Uberoi expert Family solicitors can provide assistance if you are considering getting a prenuptial agreement or simply wish to discuss how to protect your assets prior to getting married. For more information, please visit our Family law page, or to book an appointment please call 020 8840 6640.
To book an appointment with our family lawyers, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Ealing, Richmond, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public Service at any of our London offices.
