Prior to getting married, a prenuptial agreement is a formal agreement that makes provision for the sharing of a couple’s assets and income in the event of divorce. Despite the Law Commission recommending that prenuptial agreements should be given full legal force in England and Wales, the government is still considering this change.
Where one partner has substantial wealth they wish to ring-fence or a high earning capacity they want to cap in the case of a financial provision, a prenup can be seen as an essential component to marriage. Whilst they are not currently legally binding, recent cases show that agreements entered into freely and where both parties fully understand the implications and certain safeguards are met the prenuptial agreement should be upheld, unless it would cause unfairness to hold the parties to their agreement.
A prenup can be seen as a planning tool which can help to achieve a more predictable resolution of the financial affairs in the event of divorce or separation proceedings and also keep legal costs significantly lower.
Whilst unusual to consider entering in to a prenuptial agreement as part of the wedding planning process the reality is that one-in-three marriages do fail. Taking the precaution to protect your wealth in a fair and reasonable way through a prenuptial agreement that has a solid chance of being upheld in court is a practical way of looking after the future in the event of a divorce or separation.
Likewise, if your partner has suggested a prenuptial agreement, it is important to seek independent legal advice to ensure it is fair and reasonable and to get advice on how it would impact your finances in the future.
If you require advice or assistance in relation to any of these issues or other family law matters at Jordans Solicitors we have a dedicated family law team who can help. Please dial 01924 387 110 and ask to speak with a member of the family law team or visit our website and request a call back.