Is a Christmas proposal on the cards this year? Whether you are asking the question or answering it, a prenuptial agreement may be worth thinking about
In this article Laura Jones, Trainee Solicitor in the Family Department at Rowlinsons Solicitors discusses the importance of prenuptial agreements.
The Christmas season is a very popular time for engagements, with research showing that up to a third of engagements take place during this period. Whilst we do not wish to take away from the excitement surrounding a proposal, it is important to understand the legal implications surrounding marriage, particularly when it comes to finances.
What is a prenuptial agreement?
A prenuptial agreement is a written agreement which is to be entered into before marriage, setting out a number of things in relation to financial matters. The main purpose of a prenuptial agreement is to provide separating couples with clarity on how their assets will be dealt with should the relationship break down. This will of course help to minimise any disagreements during the divorce process when discussing any financial settlement.
What can a prenuptial agreement be used for?
A prenuptial agreement can be used to deal with assets such as properties, savings held in the bank, inheritance, pensions, income and business interests. This can include assets that you currently have and also those that you are likely to have in the future, a key example being inheritance. Again, by deciding pre-marriage who is to retain what will assist in limiting any contention that may arise during separation and subsequently, divorce. Prenuptial agreements can also be used to ensure that any gifts you receive are to be retained by you solely, something worth thinking about whilst opening your Christmas presents this year.
We appreciate that if you are opening up a ring box on Christmas morning, the last thing you want to think about is how to divide your assets should it not work out. This is not something that needs to be considered right away (depending on how eager you are to set the date!) and essentially, just because a prenuptial agreement is in place does not mean it will need to be used. It is an added layer of protection for both parties to ensure that they are in agreement with how assets should be dealt with, if the marriage were to breakdown.
Legal status of prenuptial agreements
Prenuptial agreements are not yet 100% legally binding in the UK however, following recent case law, the court will look to uphold the terms of the agreement, on the basis that certain criteria are met. The court will also have regard to what is fair when deciding whether to uphold any prenuptial agreement. Such criteria include that a prenuptial agreement must be contractually valid, freely entered into, signed by both parties and ideally, entered into at least 28 days before the marriage. Each party will also be required to seek independent legal advice on the terms of the prenuptial agreement and financial disclosure should also be exchanged before the prenuptial agreement is entered into.
Whether you are popping the question this Christmas or are the one receiving the ring – if you require any assistance in relation to prenuptial agreements, then please do not hesitate to contact us on 01928 735 333 and we would be more than happy to assist.