While no one enters a marriage with a view to divorce, relationship breakdowns do happen. A prenuptial agreement – also known as a prenup – provides essential reassurance that should the worst happen, there is a fair and equitable outcome for everyone involved.
A prenuptial agreement is a contract drawn up between two individuals before they enter into a marriage or civil partnership. It acts as a framework for how financial and property matters will be handled in the event of a divorce or the dissolution of a civil partnership, by clearly defining individual liabilities (such as existing debts) and rights over assets.
Prenuptial agreements are unique to the individual parties involved so can include any assets that the couple feels are most important to them. This includes:
Every relationship is different and every personal circumstance is unique, so at Hamblin Family Law we are here to provide support and guidance on drawing up a prenuptial agreement that is right for you, your partner and your family.
When a couple marries, legally all financial and property assets and liabilities are shared between both parties. A prenup outlines how shared and inherited assets will be divided in the event of a divorce, helping to safeguard individual wealth. However, a prenup not only protects against claims on wealth and assets but also obligations to share financial debt.
For business owners, a prenup can protect the business from being divided in a divorce by defining how ownership or shares will be handled.
A prenup requires full financial disclosure before entering into the agreement, ensuring both parties have a complete understanding of each other’s financial situation. This commitment to transparency and honesty can positively impact a relationship and ensure the future success of the marriage.
Prenuptial agreements provide clarity and certainty about financial arrangements in the event of a divorce or civil partnership dissolution. This financial reassurance can be invaluable in reducing stress and anxiety felt during a relationship breakdown.
Prenuptial agreements are often used to protect family assets, wealth, and inheritances from being divided in a divorce. Those who have children from a previous marriage or relationship may also benefit from a prenup to safeguard the financial interests of their family by ensuring assets are set aside for them.
Prenuptial agreements are now legally enforceable, provided that they are fair.
Therefore, before drawing up a prenup it is important to follow the following steps to ensure the agreement is upheld in court:
Step 1: Seek independent legal advice to draw up the agreement.
Step 2: A prenup must be made at least 28 days before the marriage or civil partnership.
Step 3: Both parties must enter into the agreement willingly and with a full understanding of what they are agreeing to.
Step 4: Both parties must fully disclose their assets and financial situation.
Step 5: The agreement must be fair and not unfairly disadvantage one party.
In court, each case is considered individually and will take into account each party’s individual circumstances at that time, therefore it is important to regularly review and update pre/postnuptial agreements.
