Prenuptial Agreements in the UK
Marriage is a major milestone, but beyond the romantic commitments lie practical considerations that many couples overlook. One such consideration is a prenuptial agreement, also known as a ‘prenup’. While prenups are more common in places like the United States, they are increasingly gaining attention in the UK as a means of financial planning and protection.
What is a prenuptial agreement?
A prenuptial agreement is a legal document set up before a marriage that sets out how a couple’s assets and finances are to be distributed in the event of a divorce. With over 80,000 divorces in the United Kingdom in 2022, these agreements are becoming increasingly popular to protect your future assets.
If your marriage ends without a prenuptial agreement, all assets will be classified as matrimonial assets and allocated between both parties, giving the other party a claim to your assets. Typically, this might lead to enmity between the two spouses when negotiating how the matrimonial assets would be divided; however, a prenuptial agreement avoids this.
Key legal requirements for enforceability
For a prenup to be classed as legally binding, there are several different key requirements that must be satisfied:
Independent legal advice: Each party should seek independent legal advice to ensure they fully understand the implications associated with a prenuptial agreement.
Full financial disclosure: Both parties are required to fully disclose their financial assets, which include any savings, pensions, investments, and debts.
Time: The prenuptial agreement must be signed and sorted within good time, meaning it is not acceptable to serve your other half with a prenuptial agreement on the day of the wedding, as neither party should be under undue pressure to enter into this agreement. This is usually 28 days before marriage.
Prejudice: The prenuptial agreement must not prejudice any children or future children.
A prenuptial agreement will be valid for the duration of your marriage; nevertheless, it should be reviewed frequently to ensure that it still fits the aforementioned standards, especially if you have since had children. You will also be able to make adjustments to the agreement as long as they satisfy the correct requirements and are signed and agreed upon by both parties.
If you need more information or legal assistance, please contact the Family Law Team at MJP Law at 01202 842929 or info@mjplaw.co.uk.
