Why Prenuptial Agreements Matter

It may not be the most romantic conversation you will have with your loved one, but discussing what will happen in the event of a separation might just prove to be one of the most important conversations you have.

In the most recent figures announced by the Office of National Statistics 41% of marriages end in divorce, which means that four in ten of those who marry will need to consider the financial impact of their separation, including how assets held in their sole and joint names should be divided, with the Court’s starting point being an equal division of those assets.  

For those contemplating marriage or already married, a nuptial agreement – either prenuptial (before marriage) or postnuptial (after marriage) can provide protection in the event of separation.  Cohabitation agreements can offer similar protection to the growing number of cohabiting couples who are not or have no intention of marrying.

Protecting Assets Before or During Marriage

These agreements can protect wealth built up in advance of the relationship, including cash, investments, property, business and pensions. It is also possible to extend the terms to include wealth built during the relationship, although this is less common. Protection of anticipated inheritance is also a common inclusion, and more recently, these protective agreements are extending to include provisions relating to family pets.  

The Law Commission has provided guidance on the key features of such agreements including:

• full disclosure to enable informed decisions to be made;
• both parties having the benefit of independent legal advice; and
• the agreement being entered into freely and without duress.

Why Specialist Legal Advice Matters

In the absence of a protective agreement, the Court’s starting point will be an equal division of all assets and so it understandable why these agreements have become so popular. There is however, no ‘one size fits all’. Much like any contract, the devil is in the detail, and recent Court decisions have shown that the Court are upholding the terms of nuptial agreements even when one party seeks to resile from its terms.  To provide certainty and protect wealth, the importance of these agreements cannot be understated, and this is why specialist legal advice is needed.

Considering a Prenuptial Agreement?

If you are planning to marry or would like to protect assets you have built before or during a relationship, taking legal advice early can help provide clarity and peace of mind.

Our experienced family law solicitors can advise on prenuptial agreements, postnuptial agreements and cohabitation agreements, helping you protect your financial position while ensuring any agreement is carefully drafted and legally robust.

To learn more about how these agreements work, visit our Prenuptial Agreements page or contact our team to discuss your circumstances in confidence.

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