As couples prepare for and look forward to getting married, more and more are choosing to enter into prenuptial agreements to ensure they have control over the financial implications of potential future separation.
Marriage, or entering into a civil partnership, introduces a legal requirement for spouses and civil partners to support each other financially and an ongoing duty between the couple to maintain each other.
Making sensible arrangements before the wedding means that both can feel confident about their financial wellbeing, should their relationship dynamic ever change.
Nuptial agreements can be entered into at any time during a marriage too, so it’s not too late if you are already married. The need for an agreement might arise at any time and postnuptial agreements are effective in the same way as prenuptial agreements.
A prenuptial agreement is a formal agreement entered into by a couple before they marry or enter into a civil partnership, recording what each of you brings into the marriage and setting out what each should receive if the relationship breaks down, ensuring needs are met.
Sometimes one or both of the couple want to ring-fence particular assets from those that would be shared on divorce, for example gifted/inherited wealth or an interest in a family business, which is handed onto the next generation.
Often, prenuptial agreements limit financial claims of the financially weaker spouse to what is required to meet their reasonable needs, rather than them being entitled to half of anything built up during the marriage.
The first step is to secure friendly, expert advice from a specialist prenuptial agreement solicitor on the agreement that’s right for you.
There are many different approaches to prenuptial agreements depending on the couple’s circumstances and wishes. You need to select a prenuptial agreement lawyer who will not treat the negotiation of its terms like a divorce – after all, you are approaching what should be the happiest day of your lives!
To make sense of your financial future, simply get in touch with us to arrange an initial call with a specialist prenuptial agreement solicitor. We’re proven leaders in the field of prenuptial and postnuptial agreements, and our team is extremely knowledgeable and highly approachable.
We provide tailor-made advice and guidance, including for high-net-worth clients, and we’ll explain everything you need to know in simple, straightforward language.
We also have collaborative lawyers who can work with you and your fiancé/spouse and their solicitor to discuss and prepare the document in four-way meetings.
It is always best to discuss directly with your fiancé/spouse what you need the agreement to include after you have taken advice and know what is possible. It is never a good idea for the draft agreement to come as a surprise to the person who receives it.
We will support you through every step of the process to achieve a signed agreement which you both fully understand.
If you are considering getting divorced and entered into a pre or postnuptial agreement, come and see us for early advice. We can guide you as to how the agreement you entered into impacts on the process.
A postnuptial agreement covers exactly the same content as a prenuptial agreement but is made after you are married.
Commonly, postnuptial agreements are used where one spouse anticipates receiving a significant gift or inheritance from their family, which they would prefer to protect from being shared on divorce, or for couples entering into their second marriage who wish to protect assets for children from their first relationship.
Postnuptial agreements are also sometimes entered into where the couple have had difficulties in their marriage and each wishes to have financial certainty upon reconciling to give their marriage the best chance of continuing into the future. It can alleviate any tension the couple may have surrounding the finances.
If you’ve not yet discussed what a postnuptial agreement might cover, we, as specialist postnuptial agreement solicitors, can guide you through the specifics of your situation, providing options to consider once we understand your aims. You might prefer to come to us with some specifics you’d like incorporated into your agreement.
As specialist postnuptial lawyers we’ve worked with countless couples on prenuptial and postnuptial agreements and have decades of experience drafting the related documents. Common examples of what they are intended to achieve include:
We also have experience of dealing with mirror agreements, in cases with overseas elements.
Dealing with the principles of asset division is important for any married couple if they haven’t done so already – and its arguably better to do it when you’re on good terms. This can make for more constructive and transparent dialogue and can put both parties’ minds at rest.
Where it is intended to protect a future gift or inheritance, it is sensible to take advice early and ensure that the agreement is in place by the time the asset is received.
If the marriage does ultimately break down, a postnuptial agreement should significantly reduce the stress and expense of separation, as it deals with many of the issues that can arise.
The only difference between a prenuptial and postnuptial agreement is that a prenup is made before marriage and a postnup is made when the couple are already married.
The content of the agreement is specific to each couple, but both prenuptial and postnuptial agreements can include the same provisions.
Since the landmark Supreme Court case of Radmacher v Granatino in 2010, spouses who have entered into a pre or postnuptial agreement should expect to be bound by its terms so long as the following conditions are met:
The court does have the power to depart from the terms of a valid nuptial agreement to ensure the needs of both parties and any children are met.
An agreement prepared in England and Wales can set out where a couple agree they want a divorce and financial settlement to be dealt with, as well as what should happen to their assets should the relationship breakdown.
It is important to take advice in any alternative jurisdiction. Either or both parties may be entitled to start divorce and financial proceedings overseas and it is imperative to understand what might happen on the breakdown of the relationship and how any English agreement would be treated or enforced in any alternative jurisdiction.
We and any overseas lawyer will be able to advise whether you need a “mirror agreement” in any alternative jurisdiction to increase the likelihood of an agreement being upheld across all jurisdictions, providing certainty in the event of a divorce.
We can advise if you are looking to divorce in England and Wales but have previously entered into a foreign prenuptial agreement, or where you are considering entering into a prenuptial or postnuptial agreement or a matrimonial regime abroad and will retain connections to England and Wales.
The cost will depend on the complexity of the assets involved and the extent of the negotiation of the final terms.
Fixed fees can be agreed if preferred.
The costs of advising on a prenuptial or postnuptial agreement are usually within the £3,500 – £10,000 plus VAT bracket unless particularly complicated. Considering the aim of such an agreement is to avoid an expensive dispute in the event of the marriage breaking down, those costs are well worth it for the future cost-saving and certainty they offer through any divorce proceedings.
Yes – it is referred to as a postnuptial agreement and has the same legal weight as a prenuptial agreement entered into before a marriage.
It is very important to allow sufficient time for the terms of the proposed agreement to be prepared, considered and negotiated. Once the draft is sent to the fiancé/spouse and their chosen lawyer, they need time to go through it and propose any amendments.
To comply with the criteria recommended by the Law Commission for “qualifying nuptial agreements” to be binding (should the law be changed in future to make such agreements contractually binding, as the Law Commission recommended), we recommend that prenuptial agreements are signed at least 28 days before the wedding or civil partnership.
Essentially the timeframe must be sufficient to ensure no one is under pressure when entering into the agreement and has time to consider it properly.
Therefore, it is sensible to start taking advice about six months before the wedding date or receipt of the gift that is to be protected by the agreement.
If the decision is made to seek an agreement later than that, it is still possible, and a prenuptial agreement can always be reaffirmed in a postnuptial agreement if necessary. Our best advice is that you don’t delay.
Prenuptial and postnuptial agreements are not automatically enforceable as contracts in the UK currently and the court can depart from its terms to ensure reasonable needs are met.
Often, where the agreement has been negotiated with specialist prenuptial agreement solicitors and plenty of time was allowed for consideration of the draft, the couple are able to reach an agreement relatively swiftly to settle their finances.
If there is a dispute about what the settlement should be, a financial application can be made to the court by either spouse. The nuptial agreement would be drawn to the attention of the court at an early stage to determine the weight to be given to it and how to manage the case efficiently and proportionately in light of that.
Ultimately, the court does have the power to adjust the terms to ensure reasonable needs are met. A properly entered into nuptial agreement prepared by specialist solicitors should not be disregarded altogether. Generally, it shifts the court’s starting point from a 50-50 division of the assets built up by the couple during their relationship, to the terms of the agreement.
One legal effect of getting married or entering into a civil partnership is that it invalidates any existing will, unless that Will was specified as having been made in contemplation of that specific marriage. It is therefore essential when preparing a prenuptial agreement to also make a new will to ensure your wishes would be carried out in the event of your death.
Prenuptial or postnuptial agreements limit financial claims by a spouse in the event of death and therefore wills are usually updated to ensure the provision set out in the pre or postnuptial agreement is mirrored in the will as a minimum.
Ideally, yes, you should both take legal advice. The legal test the court will apply when considering the weight to be applied to a prenuptial or postnuptial agreement includes ensuring that:
These tests are far more easily met if both parties have had independent legal advice on the effect of the proposed terms. Greater weight may be given to agreements where there was clearly a negotiation of the terms between solicitors.
It is common, but not always the case, for the person seeking the protection of the agreement to assist with funding the costs of the other party taking advice on its terms.
You each need to give disclosure of your material financial circumstances. The financial position of each party is summarised in schedules attached to the agreement. It is important the information provided is accurate and we will advise on the level of disclosure necessary for your circumstances.
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