As the summer break approaches, wedding fever sets in. Couples are either planning their big day or jetting off on a romantic getaway to “pop the question”.
Engagements and wedding planning, while romantic and exciting, come with significant costs. Amidst an ongoing cost of living crisis, many engaged couples are now considering the practicalities and financial implications of marriage, over and above choosing floral arrangements and wedding cakes.
Is a pre-nuptial agreement for me?
While addressing the financial aspects of marriage might seem unromantic, prenuptial agreements (‘pre-nups’) play a crucial role. Often thought to be reserved for the rich and famous, pre-nups are beneficial for many people. They offer sensible financial planning and protection in various situations, such as if: –
- You have pre-acquired wealth.
- You own your own business.
- You anticipate a sizeable inheritance in the future.
- You or your partner has significant debts.
- This is a second marriage.
The purpose of a pre-nup is to agree at the outset of the marriage on how finances would be divided in the unlikely event of separation or divorce. It is widely considered to be a sensible step, as such agreements can help alleviate some of the stress associated with resolving finances in the event of a relationship breakdown.
Are they worth the paper they’re written on?
It is important to remember that in England and Wales pre-nuptial agreements are not legally binding. However, such an agreement will carry weight in the event of a separation or divorce if:-
- Each party has received independent legal advice regarding the terms of the agreement.
- There is transparency between the parties (it is best practice to obtain full disclosure of each party’s assets prior to completion of the agreement).
- The document is entered into freely (no pressure can be placed on one party to enter such an agreement).
- The document is periodically reviewed and amended if required, for example upon the birth of a child.
Is it for me?
There is no “one size fits all” approach to drafting pre-nuptial agreements. Pre-nups should be signed no later than six weeks before the wedding, so it is crucial to seek legal advice at an early stage.
If you are planning your wedding, considering proposing to your partner, or are newly engaged and wish to discuss pre-nuptial agreements further, please do not hesitate to contact our Family Team on 0191 917 4429.
