When you are preparing for marriage, it is crucial to consider, understand, and be aware of all of the possible options available to you to ensure both you and your partner are secure moving forward.
Prenuptial agreements should be a part of this consideration, surprisingly though, just one in five marriages within the UK currently opt for a prenup – they are however beginning to become more common.
In this guide, we will cover everything you need to know about prenuptial agreements to help you decide if this option is right for yourself and your partner.
What Is A Prenuptial Agreement?
A prenuptial agreement, more commonly referred to as a prenup, is a legal contract with set conditions agreed and signed upon by a couple prior to marriage.
There is a lot a prenup can, and cannot do, so it is important to understand your options when preparing for marriage if this is the route you are considering travelling down.
After all, this document will outline how certain assets, debts, and other financial matters will be handled both throughout the marriage and in the unfortunate event of divorce or death.
For example, prenuptial agreements can include provisions for spousal support and other personal obligations, but they cannot typically dictate terms related to child custody or child support.
This is generally decided by the courts based on the best interests of the child.
Do I Need A Prenup?
Prenuptial agreements are not a requirement for every marriage, but to decide whether you need one for yours, you must understand what can included within one.
The typical elements of a prenuptial agreement often include, but are not limited to:
- Asset Protection
- Debt Protection
- Spousal Support
- Property Distribution
- Estate Planning
- Family Asset Protection
These aspects of personal wealth and assets can often become a point of contention during or after marriage so having a predetermined agreement can prove very beneficial and save you a lot of problems in the future.
Limitations and Misconceptions
Limitations
While yes, prenuptial agreements can cover a lot of ground in relation to a couple’s financial and property arrangements, there are also limitations.
These are the aspects typically not included under said agreements:
- Child Custody and Support
- Personal Matters and Lifestyle
- Provisions Encouraging Divorce
- Provisions Ruled as Unfair on Either Party
- Rules on Family and Child-Raising Approaches
- Illegal or Unethical Clauses
- Daily Living Arrangements
Misconceptions
Furthermore, there are many misconceptions about prenups, perhaps due to the fact they are often linked to the rich and famous and frequently sensationalised by the media.
As a result, many people view prenuptial agreements as unfair, meaningless, and unromantic. However, they can provide a practical, fair, and transparent way to discuss financial matters in marriage and outline potential outcomes should the relationship ever end.
Myth #1: Reserved for the Wealthy
It is often seen that they are purely reserved for very wealthy individuals with “a lot to lose”, whereas, in reality, there are many reasons you may consider a prenuptial agreement for marriage regardless of your wealth status.
Myth #2: Sign of Mistrust
Another common misconception would be that prenuptial agreements are a sign of mistrust within a relationship. The reality is, that they are a practical tool that allows clear and effective communication and understanding to take place within the relationship.
From our experience, they strengthen the bond of a couple and allow for attention to be placed elsewhere – the opposite of mistrust.
Myth #3: Designed to Benefit One Party
You will sometimes hear that prenups are selfish, only to the benefit of one person within a relationship. Again, in reality, this is false, both parties can benefit from the protection of their personal wealth, assets, and more. A well-designed and planned prenup will be mutually beneficial.
Myth #4: Not Legally Enforceable
A lesser, but still oft-believed comment is that prenuptial agreements are not legally enforceable.
Provided your agreement is in writing and signed for by both parties under the guidance of a professional law firm your prenup will absolutely be legally enforceable.
This is why it is important to go about it the correct, and legally binding, way.
What is the Process of Obtaining a Prenuptial Agreement?
As previously mentioned, for a prenuptial agreement to be upheld in court it is important to involve a trusted and experienced solicitor throughout the process.
Both parties should receive separate advice before coming together for the negotiation and creation of the contract.
The negotiation will begin with an open discussion around expectations and concerns about how financial matters and assets will be managed during and after marriage (if applicable).
During negotiation, it is highly advised that you choose to have mediation from your own legal representatives to ensure adequate and appropriate protection in a mutually beneficial way.
Once appropriate terms have been discussed and agreed upon, your agreement will be drafted by the chosen solicitor to then be reviewed, revised if necessary, and then signed once both parties are satisfied.
How Much Does a Prenup Cost?
The cost involved in a prenuptial agreement can somewhat vary depending on the complexity of the arrangements required. However, we firmly believe that the ease of mind and security it provides marriages is not something which can reasonably have a price tag.
If you and your partner believe that a prenuptial agreement may be in your best interest and would like expert legal advice or free consultation to find out more details about cost, please get in touch with one of our specialised solicitors by calling 01733 896789, or emailing us at enquiries@terrells.co.uk.
Can a Prenuptial Agreement Be Changed?
One concern surrounding prenuptial agreements is what happens if financial situations or assets change during the course of a marriage.
Given that a prenuptial agreement is by name, created before marriage, this is a valid concern. Unfortunately, your prenuptial agreement can only be amended in limited circumstances throughout the marriage, such as when a child is born or your financials change.
However, do note that this would then be classed as a postnuptial agreement.
I Am Already Married, Is It Too Late to Arrange a Prenup?
If you are already married and now looking to get a prenuptial agreement then it is unfortunately too late for you to do so.
However, you will be entirely eligible for a postnuptial agreement which can cover all of the previously discussed areas provided it meets the same criteria to ensure it holds valid in court.
How Long Does a Prenup Last?
By default, a prenup will last the entirety of the marriage.
That being said, some agreements will include what is referred to as a “sunset clause” creating a predetermined expiration date or condition of the document.
We would advise you to regularly review and revise your prenuptial agreement with your legal professional to ensure it is kept up-to-date and relevant.
If your prenup does not account for recent changes in circumstances such as additional children, it may not be considered valid in court.
How to Prepare for a Prenup
With the importance of a prenuptial agreement evident, you want to be prepared:
- Discuss the agreement far in advance of your wedding day to allow you and your partner adequate time to think about, discuss, and agree on the various provisions.
- Speak with a professional sooner rather than later to ensure you are both fully aware of the process and how to mutually benefit.
- You must have signed and completed your agreement more than 3 weeks in advance of your wedding.
Conclusion
A prenuptial agreement is a legally binding document and therefore must be taken seriously.
Go into this with care, respect, and a willingness to compromise if you are looking to get the most out of your contract.
For further advice or a no-obligation consultation, contact Terrells LLP today by calling us on 01733 896789, or emailing at enquiries@terrells.co.uk.
