Pre-nuptial Agreements – What You Need to Know and Common Misconceptions

With the high rate of divorce in the UK, more and more couples are choosing to enter prenuptial agreements. In doing so, it provides a strong foundation for marriage with a shared sense of openness and honesty.

What are Prenuptial Agreements?

In the UK, a prenup is a legal contract drawn up between a couple prior to getting married. This legally binding agreement outlines each person’s assets and debts.

Moreover, it records the ownership of assets and finances and how the assets should be divided in the event of divorce. In simple words, it is a ‘who gets what’ agreement that sets out each person’s property rights. Prenuptial agreements help couples avoid financial surprises and resolve potential future financial disputes.

Purpose of Prenuptial Agreements

Prenuptial agreements help against uncertainty around the arrangements and costly legal battles in the event of relationship breakdown. It offers protection against financial claims and helps couples feel more secure and reassured.

Typically, these prenuptial agreements cover

• Business and retaining full control of ownership
• Inherited money, assets, and savings
• Specific assets
• Protection from spouse’s debt
• Sets out how the assets will be divided following the breakdown of marriage

What is Included in a Prenuptial Agreement?

It can be completely tailored to you and your partner’s demand, stating the assets, income, and debts of each person. It also states how the assets will split between you and your partner should your relationship break down.

Moreover, it includes specific assets that you want to retain and prefer not to be divided. It covers

• Property in your name and joint names
• Savings
• Inheritance
• Stocks, shares, and premium bonds
• Income
• Business

What Cannot Be Included in the Prenuptial Agreement?

It covers a wide range of assets, however, make sure the prenup does not include the following matters for it to be taken seriously in court.

• Child support and custody
• Unfair or illegal elements
• Personal and lifestyle matters

Common Misconceptions About Prenuptial Agreements

Here are some common myths that you should be aware of before crafting a pre-nuptial agreements

• Prenups Are Only For Wealthy Couples – Every couple, whether rich or not, can benefit from this legal contract to save income, time, and stress arguing about financial matters at a later stage.
• Protects the Spouse With Substantial Assets – It protects the interest of both spouses, not only the one with more assets. Prenups give clarity to the partners with lesser financial status as they will know about the financial entitlements beforehand.
• Expensive – Drawing up a prenup agreement is relatively straightforward and affordable. It also helps you save plenty of time and thousands of dollars in the future.
• They are Only Useful During Divorce – The common perception is that prenups are only relevant in the event of separation or divorce. In reality, it helps each spouse by outlining financial expectations and establishing a real estate plan.
• Sign of Weak Relationship – Most couples are sceptical about creating a prenup. Rest assured, it is not a sign of a weak relationship but strengthens your relationship and provides a strong foundation for marriage.
• The Court Rarely Enforces Prenups – Indeed, some of the prenups are not enforced in the court but the majority of them are. In rare cases, prenups are not enforced when proper legal procedures were not followed while crafting them.

Disclaimer:

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.

About the Author