Pre-nuptial agreements or “pre-nups” have been in the news in the last few months, with details of celebrity agreements often hitting the front page. Many people think that pre-nups are just for celebrities or those with significant assets. In reality, pre-nups can be useful for anyone with assets, debts, or children.
A pre-nuptial agreement or “pre-nup” is a contract that can be entered into by couples before they get married or enter a civil partnership. It can set out how the couple intends for their assets to be distributed if the relationship breaks down. They have gained popularity in recent years as more couples want to have clear boundaries to try to protect their finances and assets.
There is a common misconception that entering into a pre-nup implies a lack of trust in a relationship, but that isn’t the case. The process of entering into a pre-nup encourages transparency and open communication about both parties’ financial situations. It’s also a common misconception that pre-nups are legally binding. While they are not legally binding at present in England and Wales, when entered into correctly with the right advice, they can be extremely persuasive should any dispute as to the agreement arise upon separation.
A pre-nup can include agreements as to how properties, potential inheritances, family heirlooms and savings will be treated upon separation or divorce. It can also include any businesses interests that either party has. One of the reasons people might choose to enter into a pre-nup is to avoid any potential lengthy and costly disputes in the future. This is often the case for people who have been married and divorced previously. A pre-nup can provide peace of mind and can help to avoid difficult conversations in the future.
When considering entering into a pre-nuptial agreement, both individuals should seek independent legal advice. The collaborative process is a great way to enter into a pre-nuptial agreement as both people and their lawyers can sit around a table and work together It’s important to have a full picture of the assets, debts, savings accounts, and income of both people when entering into a pre-nuptial agreement. The final agreement should be drafted by a legal professional to ensure it is legally sound and fair to both parties.
At Batt Broadbent, our Family team can guide you through the process, collaboratively or otherwise, with expert legal advice.