What is a prenuptial agreement?
A prenuptial agreement is a legal agreement between two people who are planning to get married or enter a civil partnership.
It clearly sets out how any assets, property, and finances could be dealt with if the marriage/civil partnership breaks down and ends.
A prenup provides greater clarity about your financial arrangements and allows you and your partner to discuss what you both consider a fair agreement before getting married.
Prenup agreements can be particularly useful when one or both partners have significant assets, businesses, inheritance, or children from a previous relationship. It can also be useful if one partner has other financial interests they wish to protect.
While prenuptial agreements are not automatically legally binding in England and Wales, they can carry significant weight in court should the marriage break down.
What is a postnuptial agreement?
A postnuptial agreement is an agreement entered into after a couple are already married or have entered a civil partnership.
It can be used to set out how assets and finances could be dealt with if the relationship ends.
There are many reasons why couples consider getting a postnuptial agreement. This can include financial circumstances changing since marriage, receiving an inheritance or significant assets, starting or growing a business, or simply wanting greater clarity on your financial agreement. It is also common for couples who have ran of time to sort a prenup before their wedding or did not know about prenup’s until after they were married.
When should you consider a prenuptial agreement?
A prenuptial agreement may be appropriate if:
- You own a home, stocks or shares, inheritance, or retirement funds.
- You have children or grandchildren from a previous marriage or relationship.
- There is a significant difference in wealth between you and your partner.
- One of you will be supporting the other through higher education.
- You are undertaking a qualification which could lead to a potentially lucrative career.
- You have loved ones who require care.
- You own a successful business or expect your business to grow in value.
- You are a business owner.
- You are remarrying.
- You have significant assets or financial interests you want to discuss before marriage.
You do not have to be wealthy to consider a prenup. The right agreement will depend on your individual circumstances and what you want to achieve.
What are the benefits of a prenuptial agreement?
A prepared prenuptial can provide clarity and reassurance on a number of financial agreements such as: