A prenuptial agreement is a written, formal agreement between two partners prior to their marriage.
It sets out ownership of all their belongings (including money, assets and property) and explains how it will be divided in the event of the breakdown of their marriage.
Call us on 01625 837 937 or request a call back
What is a Prenuptial Agreement
When a couple marries their assets made be considered to be a single financial pot. Prenuptial agreements can be an effective way to protect wealth brought into a marriage.
A Prenuptial Agreement sets out the rights to assets acquired prior to a marriage and during the marriage and what happens to these assets in the event that the relationship breaks down.
Why get one?
A prenuptial agreement provides a clear agreement that can lead to peace of mind for both parties.
They can give you peace of mind if:
- You have children from a previous relationship and want to ensure certain assets are reserved for them and protect their inheritance rights. (It is also crucial to make a will)
- You want to protect inheritance or future inheritance, both money and assets
- Either party own a business which they’d like to retain control of
- If your spouse has outstanding debt, a prenuptial agreement with a ‘debt clause’ can protect you from being liable
- There are assets and/or property that would be very hard to split 50/50
Will a Prenuptial Agreement be effective ?
Courts do uphold Prenuptial Agreements where they are entered into in the full knowledge and implications of the agreement. However, they are not binding upon a court and a court does not have to follow the Prenuptial Agreement.
If you are already married and want an agreement put in place then you can arrange a postnuptial agreements.
This will enable you to define what will happen in the event of the marriage ending.
A postnuptial agreement can effectively do the same things as a prenup, except postnups are signed after the marriage.