In contemplating marriage whilst it may not seem the most romantic approach in today’s every changing world, many couples decide to enter into an agreement that shows what they intend to happen to their money and property if the marriage or civil partnership were to end.
There are many reasons for couples to enter into a pre-nuptial agreement, from those entering into second marriages, who already have children and property will wish to protect their pre-owned assets as far as possible, to those who have substantially greater capital or income, or wish to protect assets received through inheritance or family trusts. Whatever the reasons whilst pre-nuptial agreements are not strictly binding in the event of a later divorce, the terms of a pre-nuptial agreement may be decisive in the event of a dispute.
A pre-nuptial agreement is a bespoke document which is drafted to reflect your particular circumstances and can cover a whole range of issues to suit your needs. A pre-nuptial agreement records what you have agreed, in advance of getting married or entering into a civil partnership, in which cause it is called a pre-registration agreement.
It is appreciated that having these kind of discussions can be awkward or difficult at a time when you hope to be at the beginning of lifelong commitment, however such conversations can actually end up saving you a lot of time, money and stress, should you choose to end your marriage/partnership further down the line.
With that being said, many of our clients still wonder if a prenuptial agreement is really worth it. We think so, and here is why…
A prenuptial agreement can protect your assets. This is especially valuable if you are coming into the relationship with inherited properties, wealth or heirlooms, that you want to protect and provide for your children.
Save Time And Costs
A prenuptial agreement is an initial investment at first, however, it can save you both time and money in the long run. By already having a plan of how your assets will be divided, you can potentially avoid a lengthy/acrimonious divorce.
Protect Yourself From Debt
If your partner is coming into the marriage/partnership with debt, a prenuptial agreement could limit your liability for their debt.
A prenuptial agreement is a way to be transparent from the start. Lay all your cards on the table and get a complete understanding of your financial situation, as a couple. This is a great chance to be open and honest about where you both sit financially.
Make Provisions For Children
A prenuptial agreement is a way to make provisions for children from a previous marriage. This will identify any properties and or money you would like to leave to a child.
Prenuptial agreements were once reserved for the rich and the famous, however, more and more couples are turning toward them as a way to broach a wider conversation about money, wealth and debt, before tying the knot. We often see clients who have gone into relationships without fully understanding their partner’s financial situation, but a prenuptial agreement is a great way to get all this out in the open.
If you would like to find out more about prenuptial agreements, and how our lawyers can help, just get in touch we one of our experienced family law team.