Many couples can benefit from a prenuptial agreement (prenup), which helps them clarify their financial position and provides important protection should they divorce in the future.
This is a comprehensive guide to everything you need to know about prenuptial agreements, covering the following questions:
- What is a prenup?
- How do you get a prenup?
- How do you make sure a prenup stands up in court (is binding)?
- Why would a couple get a prenup?
- What does a prenup do?
- How does a prenup work?
- Can you get a prenup in the UK?
- Should I get a prenup?
- How long does a prenup last?
- What happens if you don’t sign a prenup?
- Can you get a prenup after marriage?
- Can you change the terms of an existing prenup?
- How much does a prenup cost in the UK?
If you are considering a prenup or need further advice on your situation, you can take advantage of a free 30-minute telephone appointment to talk through your situation with our team.
To schedule this initial chat with one of our prenuptial agreement solicitors, call 0800 321 3832 or complete our online form.
What is a prenup?
A prenuptial agreement (usually just referred to as a prenup) is an agreement a couple sign before marriage to set out how their finances will be dealt with should they divorce. While the exact details of a prenup will vary from couple to couple, a good prenuptial agreement should set out both parties’ rights to any property, debts, income and other assets purchased together, acquired individually or brought into their relationship.
If you are already married, you can make an equivalent agreement called a ‘postnuptial agreement’. For a civil partnership, you would instead create a pre-civil partnership agreement.
How do you get a prenup?
If you think a prenup may be beneficial and are considering creating one, the first step will always be to speak to a specialist family law solicitor. This will give you a clearer idea of your position and the sorts of provisions you want to make. In any case, you and your future spouse will need independent legal advice before signing the agreement to ensure it fairly and correctly records the agreement you have reached and will be considered by the courts if required.
Key points you and your solicitor will likely discuss are:
- What assets do you have?
- What assets does your partner have?
- Are either of you anticipating an inheritance?
- How would you like your finances to be shared should you separate?
- Do either of you have any children? If so, what are their current and likely future needs?
Once you are happy to proceed, your solicitor will draft the prenuptial agreement for you. Your partner’s solicitor will then need to review the document, make sure your partner fully understands the terms and suggest any necessary amendments.
Once you are both happy with the prenup, you must both sign it. This should take place at least 28 days before your wedding.
How do you make sure a prenup stands up in court (is binding)?
It is important to clarify that prenups are not strictly legally binding in England and Wales. However, as long as the correct process was followed when the prenup was prepared, it will carry significant weight and will likely be upheld if the court becomes involved.
For a prenup to ‘stand up’ in court, the following criteria must be fulfilled:
- Both parties must have received independent legal advice before signing
- Both parties understood the terms and implications of the prenup
- Neither party was pressured or coerced into signing the prenup
- Both parties provided full financial disclosure
- It would be both fair and reasonable to uphold the terms of the prenup
- The prenup does not prejudice children in any way
- The agreement has been regularly reviewed to ensure it is fair and reflects a couple’s circumstances
Why would a couple get a prenup?
Some might argue that preparing a prenup is a sensible preparation for any married couple as it provides an opportunity for the couple to be open and honest about their finances and their financial expectations.
There are many specific reasons a couple might decide to get a prenup. These include:
- To provide certainty around finances should the marriage end in divorce
- To protect the interests of any children from previous relationships
- To protect family assets, such as family trusts and businesses
- To remove potential tensions over financial issues, both during and after the relationship
- You might even agree to sign a prenup to avoid questions about your motivation in entering the marriage
What does a prenup do?
A prenup sets out clearly what the couple agree should happen to their assets if they separate. It can cover things like how any property will be divided, or who would remain living in the family home, as well as how inherited wealth might be treated.
In the event of a separation, the terms set out in the prenup will clarify how these issues should be dealt with. This can remove a lot of stress and the potential for conflict.
How does a prenup work?
A prenup will only come into effect if a couple decides to divorce. As part of the divorce process every couple must reach an agreement about how their finances will be divided. Having prepared a prenup this will already have been discussed and set out. The couple can refer to the prenup, which should reduce the potential for any confusion or conflict over what will happen next.
Can you get a prenup in the UK?
Any couple due to marry can create a prenup in the UK, but as discussed above, the agreement will not be automatically legally binding. This is why it is so important to get expert legal advice from the outset.
Should I get a prenup?
The decision to create a prenup is an entirely personal one. Whilst a prenup isn’t considered the most romantic gesture ahead of a wedding, it does provide a degree of reassurance. Most importantly a properly drafted prenup can save upset and potential costs should the relationship come to an end.
Speaking to a specialist in prenups will help you better understand your position and the potential consequences of not having an agreement in place.
How long does a prenup last?
Unless a specific clause has been added into an agreement, prenups will typically last for the duration of the marriage. Some couples choose to add a clause that the prenup becomes invalid after the 10th anniversary say, on the birth of a child or some other anticipated event.
It is important to regularly review the terms of the prenup to ensure that they still reflect your situation and would be fair to uphold if you were to divorce.
What happens if you don’t sign a prenup?
If you do not have a prenup in place, you and your spouse will need to decide how to divide your assets at the point that you decide to divorce. You may be able to do this amicably, through discussion and negotiation or if you cannot agree you can apply to a court for a Financial Order.
There is a risk that, without a prenup, this process can lead to conflict, resulting in an outcome that doesn’t entirely suit your best interests.
Can you get a prenup after marriage?
If you are already married or in a civil partnership, and wish to put an agreement in place, it is possible to sign a ‘postnuptial agreement’.
Postnuptial agreements regulate the financial terms of a potential divorce or separation in much the same way as a prenuptial agreement. The only tangible difference between postnuptial and prenuptial agreements is the point at which they are signed.
If you already have a prenuptial agreement in place, and wish to amend the terms, you will need to sign a new postnuptial agreement. This will be an essential step if there have been any changes in your circumstances since the prenuptial agreement was first signed (such as if one partner’s income has significantly increased or an unexpected inheritance has been discovered).
Can you change the terms of an existing prenup?
If you already have a prenup in place and wish to change the terms, you must sign a new postnup.
Signing a postnup to replace a prenup may be necessary if there have been any significant changes to your circumstances since the prenup was first signed, such as one partner’s salary significantly increasing or unexpected inheritance.
How much does a prenup cost in the UK?
The cost of a prenup will largely depend on your situation. To produce a legally binding prenuptial agreement, it is essential that both parties take advice from a family law solicitor.
You will be charged for drawing up the agreement, with prices normally starting at around £1,500 plus VAT. The total cost of a prenup in the UK will depend on the complexity of your finances and the arrangements that you wish to make. This price will normally include advice on the full implications of the agreement and guidance on appropriate times to review the content.
Our expert family law solicitors can explain the process of creating a prenup during a free initial telephone appointment and will provide a quote for drawing up a prenuptial agreement in your circumstances.
Get advice from a prenuptial agreement solicitor
Prenuptial agreements can be a sensitive issue, but they can save you a lot of stress and uncertainty and give you and your family financial security for the future. Our friendly, expert team are here to make sure you get the right agreement in place as smoothly as possible.
To take advantage of your free 30-minute consultation with our expert prenuptial agreement lawyers, call 0800 321 3832, or complete our quick online form.
Gemma Scourfield
Divorce and family solicitor Haverfordwest
