Financial Matters
Prenuptial agreements
While no one gets married expecting to separate, with the high divorce rates in England and Wales, many couples are choosing to sign a prenup.
National Presence With 37 Offices
Legal 500 Leading Firm 2024
Prenuptial agreements give you a sense of reassurance, reliability, and transparency, which is critical for anyone who wants to secure their future before they marry.
How Can Austin Kemp’s Divorce Solicitors Help You
Our team at Austin Kemp Solicitors can help you with a range of legal problems, from prenups to separation. We specialise in prenuptial agreements and can work with you to create an agreement that is tailored to your needs. We can offer valuable advice, provide a clear explanation of legal jargon and create a highly personalised legal document that can protect your assets.
Prenuptial Agreements: What You Need to Know
According to research, people are getting married at an older age. In the 60s, 72% of all adults at the age of 18 were married. Today, the rates are 51%. This decline can be seen in different age groups. This means that people have accumulated more wealth before their marriage.
Also, many couples want financial stability before they marry. So, there is nothing wrong with wanting to protect your hard-earned assets. Having a prenup doesn’t restrict you from enjoying the relationship. It doesn’t harm a healthy marriage, but, it can come in handy in an unsuccessful marriage.
A prenup is legal in England and Wales, however, it is not legally binding on a court. If done well, prenuptial agreements can hold weight in court hearings.
For the prenup to be valid, the agreement must:
- Use proper wording and shouldn’t display any kind of bias
- Include full disclosure of the couples’ financial situation (i.e liabilities, assets, and debts)
- Be voluntary
- Meet the needs of both parties and not prejudice the children
- Be signed in advance, before the marriage
- Remain unchanged after the marriage (no clauses have been added after signing the document)
Lack of council, guidance and legal advice increases the likelihood of the prenup not being given substantial weight by any future court.
Prenups: Are They Right for You?
There is a classic misconception that prenups are for the rich and wealthy. But, that’s not the case. If you have valuable assets that you want to protect, whether that is the family home, business, savings, artwork, vehicles, or items of sentimental value, you can get a prenuptial agreement.
Prenuptial agreements can also be used as a safeguard to avoid being held liable for debt that your spouse has. Another reason you may want to sign a prenup is if you’ve been married before and you have children from a previous marriage or relationship.
Prenuptial agreements ensure that the children from the previous marriage get the financial support they need. The document helps avoid any financial pitfalls in case of divorce. However, it can also be used for other things, not just assets.
For example, you can sign a prenup and agree to mutual divorce if the marriage fails to meet certain requirements. Many outcomes and conditions can be applied.
How to Make a Prenuptial Agreement
Talk to a solicitor or lawyer to have them prepare the document for you. Of course, you can find prenup templates online, and try to save some money. But if you don’t get legal advice, chances are, the document may not hold weight in court proceedings.
To make the prenup, talk to your partner. Openly list all your shared expenses, debts, assets, credit ratings, or anything of value. You need to communicate whether you plan to have separate or joint bank accounts, and what will happen to the assets in case of divorce.
Be honest and don’t hide money or any important financial information. Decide what to do with the marital property and define how it would be divided if the marriage ends. If you have or plan to have children, outline the financial support they would get.
There must be an equal give and take and a fair arrangement for both parties, including the children. The document must be in writing and notarized. Every signature should be witnessed by someone who is not a family member and is older than 18.
Because a judge will take a careful look at the agreement, it is critical that you provide a document that is understandable, well-drafted, clear, concise, and uses legal jargon. If you plan to write your own prenup, have a lawyer or solicitor look at it, to make sure you are doing everything right.
What Happens if You Don't Have a Prenuptial Agreement?
Without prenuptial agreements, matters of division of assets or other arrangements are often left to the court. Unless you and your partner can come to an agreement out-of-court, you can’t protect your valuables if you don’t have a prenup.
That’s because marriage is viewed as a contract between people. This contract gives couples the right to share property and other assets, which become joint assets. So, if your spouse were to incur debt while you were married, after divorce, you may have to pay for these expenses.
The house, properties, or businesses are often divided, with the spouses getting their share. This means that your ex-spouse may have the right to give your property away or sell it. If this is something you are not comfortable with, then it is best to sign a prenup.
The Benefits of Having a Prenuptial Agreement
- You get to protect what’s important (such as children and assets)
- You get to choose what’s best for your business
- You get to protect your interests
- You get to prevent disputes and arguments
- You avoid debt transfer
Should You Sign a Prenup?
Weigh out the pros and cons before signing. If you need safety and reassurance, then you can make use of prenuptial agreements. But, if you believe your partner to be reliable, trustworthy, and coherent, then there may not be a need for one.
What Happens if You Break Your Prenup?
If you or your partner try to invalidate or claim there has been a breach of contract, you need a legal strategy in place. Book an appointment with Austin Kemp Solicitors or visit our website atwww.austin-kemp.smith.co.uk/. We can get you on the right track.
