A Short Guide to Prenuptial Agreements
Often in a marriage, one person has more than their partner when it comes to assets and/or money. If said assets are obtained before the marriage takes place, then a person may take it upon themselves to protect these assets in case the marriage fails. A prenuptial agreement, most commonly known as a prenup, makes this process a lot easier and entirely possible for anyone looking to protect their assets. This is a formal agreement between the couple, which clearly maps out an agreed upon division of assets after a separation or divorce.
The prenup is signed prior to the marriage, and tends to be an option for couples with a distribution of wealth that is fairly uneven. As prenups become more and more popular amongst couples, below we have delved into the key things you need to know about these agreements.
What to Consider
- Despite their perceived popularity amongst the world’s most well known celebrities, prenups are not only for those with fame and fortune. They are becoming more popular simply as a measure of good sense, prior to getting hitched.
- Best practice dictates that both people in the agreement are represented by their own personal solicitor Both parties must fully declare all of their assets from the beginning of the process.
- Ensure that your solicitor is experienced with family law and prenups. Hiring a law firm with a track record in these areas can make the entire process much smoother.
- The prenup has to be entered into freely, and it is the individual choice of both parties.
- One very important criteria for a legitimate prenup is ‘full and frank’ disclosure by both halves of the couple, with nothing withheld. Your full circumstances must be explained to both your solicitor and partner, with such disclosure also being recorded as part of the agreement.
- Thinking ahead can be key. The timing of any prenup must be taken into account. Entering into an agreement like this just before your wedding isn’t a good idea. It is recommended that there is a period of around 3 weeks minimum between signing a prenup and your marriage.
- Make sure you include a review clause in your prenuptial agreement.
- It’s impossible to bypass the authority of the family courts.
- There are other methods of protecting your assets aside from prenups. You can also use postnuptial agreements which represent an alternative way of protecting what is yours after a marriage has ended.
- Whilst prenups aren’t automatically binding in either England or Wales, the court has recently been more open than ever to giving weight to them, provided that the above steps are followed properly.
- If there is any supposed unfairness within the prenup, this can be picked up when in court. Despite this, if the content of the prenup is fair in the eyes of the court, the agreement is the perfect approach to ensure the division of assets is clear for both you and your spouse.
Why Should I Get a Prenup?
In short, whilst prenups may come across as a daunting prospect at first, not to mention an awkward topic of conversation, they can be hugely beneficial for all involved. When approached properly and with fairness in mind, they can be a great help during difficult times and help to ease the stress that come along with the breakdown of a marriage.
Thank you to Tinsdills Solicitors for this article.
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