Wedding season is upon us and, for most couples, the most important items on the agenda for discussion are venue, dress, suits, flowers, entertainment and whether or not the catering budget can stretch to canapés. One very important (although, admittedly, not very romantic) point which is often overlooked in these discussions is the consideration of a pre-nuptial agreement.
Very few people embark on their big day with divorce in mind but it is nevertheless prudent for all couples – particularly high net worth individuals, those marrying for the second time, or business owners – to take some time to consider how their pre-marital assets and finances will be affected once they are married.
After marriage, all assets will essentially fall into one pot and become “matrimonial assets” which, in the event of a divorce, could be shared between couples by order of the court. If this isn’t what either party would wish to happen, a pre-nuptial agreement can provide peace of mind that the intention of both parties has been formally documented from day 1. In agreeing the form of the pre-nuptial agreement, couples are able to decide between themselves how they would like their property and finances to be divided in the event of marriage breakdown, allowing them to ringfence certain assets against which their spouse would not be entitled to make a claim.
The leading case for pre-nuptial agreements is Radmacher v Grantiano which highlighted that pre-nuptial agreements are legally recognised under UK law and will be enforceable if certain conditions are met. If, however, a dispute should arise in the future and the court decides that the agreement is unfair, there is a risk that the agreement will be entirely disregarded. We would therefore always strongly recommend that any couples wishing to enter into a pre-nuptial agreement should do so under the advice and guidance of a specialist Family lawyer. This advice should be obtained as far in advance of the wedding as possible, with the minimum timeframe for signature being 28 days before the wedding.
To discuss any of the issues raised in this article, or for advice and assistance in connection with any other matter, please do not hesitate to contact Solicitor, Ellie Straughan, by email at els@swinburnemaddison.co.uk or by phone on (0191) 384 2441.
This article is for general information only. It does not, and is not intended to, constitute legal or professional advice. The law may have changed since this article was published and we would always recommend that you seek specific advice on any particular legal issue.
