Prenuptial agreements and financial planning for couples
In the UK, prenuptial agreements (or prenups) have traditionally been associated with celebrities and the ultra-rich. Speculation is already growing as to whether Taylor Swift will enter into a prenup ahead of her forthcoming marriage. However, times are changing. Increasingly, couples from all walks of life are turning to prenups as a practical way to plan for the future.
While not automatically binding in current statute law in England, the family courts will not give weight to a well-drafted prenup, especially if it’s fair, transparent and prepared in advance with both parties receiving legal advice. Far from being unromantic, a prenup is really about clarity and protection. It allows both partners to set expectations, safeguard family wealth or future inheritances and family gifts and helps to avoid potential conflict at a later stage.
Whether you’re entering marriage with substantial assets, debts, or simply want to make sure your financial arrangements are clear from the start, a prenup can offer peace of mind. Put simply, if you’re planning a wedding, you should consider planning a prenup.
What is a prenup?
A prenuptial agreement (often called a prenup) is a legal contract signed by two people before they get married or enter a civil partnership. It sets out how assets, debts and certain financial matters will be handled during the marriage and in the event of divorce/separation or death.
My partner isn’t keen on getting a prenup. What should I do?
It’s normal for one or both parties to feel hesitant about the idea of a prenup. They are often viewed as unromantic. Many people worry it means there’s a lack of trusts, or that is puts money ahead of love. In reality, a prenup is about fairness and clarity. A good way forward is to take openly about why you feel a prenup may be important way ahead of your marriage.
If your fiancé still has doubts, you could suggest both of you receive independent legal advice so you fully understand what a prenup can (and can’t) do. Sometimes, hearing it explained by a solicitor helps take the pressure out of the discussion. Remember, a prenup must be entered into freely and so it can only be entered into if you are both in agreement.
My fiancé and I are both young, have little savings and no property. Is a prenup even necessary?
A prenup isn’t only about protecting wealth, it can also set expectations around debt, future inheritances or lifetime family gifts, or even how you’ll handle money if one partner steps away from work to raise children. Even if you don’t have much now, a prenup can protect future earnings and avoid disputes from the road.
Can a prenup protect family wealth or inheritance?
A prenup can help to “ring-fence” assets like inherited property, family gifts, savings, or shares in a family business so they remain separate if you divorce. The family courts will be more inclined to uphold an agreement provided the agreement reached is fair and both partners have had independent legal advice. However, if excluding an asset would lead to an unfair outcome for one party, a judge could still make a different decision.
What would happen if our circumstances were to change after marriage?
Life rarely stays the same, and prenups don’t have too either. If you situation changes, for example, you buy a house, have children, inherit money, or one of you stops working, you can update your agreement with a postnuptial agreement. A postnup works in much the same way as a prenup but is signed after the wedding. It allows couples to adapt their arrangements, so they remain fair and relevant as circumstances allow. It is generally advisable to agree when your prenup will be reviewed.
I’ve heard prenups can be “thrown out” easily. Is it worth the effort?
Since the landmark Radmacher v Granatino case in 2010, family judges are giving more weight to prenups if they are fair and properly executed. While not 100% binding, they carry real influence and often guide the court’s outcome.
Think of a prenup as smart planning, not pessimism. It ensure fairness, safeguards assets and can save stress if life throws a curveball.
For further information about prenuptial agreements please contact our Family Team on 01473 611211, or fill in our contact form below. Barker Gotelee has an office in Martlesham, Suffolk.
