A pre-nuptial agreement, commonly called a prenup, is an agreement between a couple that details how their assets should be divided if their marriage fails. It is signed before getting married and outlines each person’s legal rights regarding the assets that they acquired jointly and/or individually.
You will likely need a prenup if:
1. You are significantly wealthier than your partner: A prenup will protect any assets you acquired before the marriage from being distributed to your spouse. Without a prenup, your spouse might get an equal share of assets, including what you owned before the marriage.
2. You anticipate gaining more assets in the future: You can use a prenup to protect any assets you expect to receive in the future and to separate them from the marital pot. These could include inheritance, investments, and increased earnings from your career.
3. You want to safeguard your business: Your business is one of the assets that your spouse can claim during a divorce. Signing a prenup will separate the enterprise from other marital property and prevent your partner from claiming a share.
4. You want to safeguard inheritance: A prenup will help to protect existing assets that you intend to leave to someone else. For instance, you can use it to set aside assets for children from a former relationship.
5. Foreign laws are likely to affect your divorce: Sometimes, divorce laws from foreign countries affect asset distribution if one partner is not from the UK. A prenup will protect you from losing your assets under laws from outside the country.
Will a prenup benefit me?
A prenup provides an excellent opportunity for you and your partner to openly discuss finances before marriage. Each of you declares your assets and liabilities, so there are no financial surprises in the future. It also allows you to plan how to divide your assets in case of a divorce. Although not always possible, you can often avoid lengthy and costly proceedings.
Additionally, a prenup can safeguard you from your partner’s debts, especially if they are substantial. You can include a clause that limits your liability and protects you from acquiring responsibility for any debts your partner accrued before the marriage.
While a prenup is not legally binding in the UK, the divorce court may accept it as evidence of a couple's intention, especially if it was drafted by a family law solicitor. It should not leave either party in financial hardship or cause harm to the children’s fair requirements.
How can GloverPriest help?
Prenups play a critical role in family courts and in determining divorce outcomes. Therefore, it is a good idea to contact a family law solicitor if you need a prenup that protects your interests.
At GloverPriest, we specialise in helping couples draft prenups. For friendly and transparent advice, speak to one of our expert family lawyers today. Complete our enquiry form.