Prenuptial Agreements: Why they are not just for the rich and famous

Prenuptial agreements have long carried a bit of an image problem in England and Wales. Many people assume that they are relevant only to celebrities or the very wealthy who are trying to protect their mansions, yachts and multi-million-pound portfolios. Yet the reality is quite different. In modern family law practice, I am seeing prenups becoming increasingly sought by the mass affluent and not necessarily the very wealthy who simply want clarity, fairness and a degree of financial security before getting married.

Whilst pre-nups in England and Wales are still not legally binding, provided they are entered into freely, with full financial disclosure and parity of legal advice and couples are not entering into them moments before the big day and they are not fundamentally unfair, courts are now attaching significant weight to them and are upholding them in some cases in their entirety. As a result, a well-drafted prenup can significantly shape the financial outcome on divorce, and for many couples, that reassurance is invaluable.

Why Prenups matter for most couples

Protecting pre-marital assets

People are marrying later in life and more often after a previous relationship. By the time a couple reaches the point of engagement, one or both may already own a property, have built up significant savings and pension or other investments. Without a prenup, those assets can become part of the “matrimonial pot” and be subject to the court’s greater discretion should there be a dispute over how they should be divided. A prenup offers clarity by stating which assets are intended to remain separate.

Safeguarding inheritances and family gifts

Many couples can be motivated by the wish to preserve an inheritance or gift from a parent or grandparent. English law distinguishes between what is matrimonial property and what is likely to be considered non-matrimonial property. However, in practice that line can blur—particularly if the asset becomes mingled with the parties’ shared finances. A prenup allows both partners to record clearly that certain assets should remain outside the sharing principle.

Providing stability for blended families

Where one or both partners have children from an earlier relationship, a prenup can be an important tool for protecting provisions intended for those children. It allows parents to marry confidently, knowing that their children’s financial interests have been taken into account from the very outset.

Reducing conflict, uncertainty and legal costs

Financial remedy proceedings can be very emotionally and financially draining for separated couples. A prenup cannot eliminate all potential disagreement, but it can significantly reduce the scope for dispute. Couples who have already discussed and agreed the broad financial framework of their marriage are far less likely to face acrimonious litigation later on.

Standish v Standish: A Clear Illustration of why a prenup would have helped

The recent Supreme Court’s decision in Standish v Standish has brought renewed attention to the importance of distinguishing matrimonial from non-matrimonial property. Although the case concerned unusually large sums, the principles still would apply across the spectrum.

In Standish, substantial assets—worth around £77 million—had been transferred into the wife’s name for inheritance tax planning. When the couple separated and began divorce proceedings, the question was whether those assets that had been transferred had become matrimonialised simply because legal ownership had changed during the marriage and that they should be open to equal division under the “sharing principle.”

The Supreme Court held that they did not amount to matrimonialisation. What mattered was the origin of the assets and the intention behind the transfer from the husband to the wife. Because the assets were never intended to form part of the couple’s shared marital wealth, they retained their non-matrimonial character.

Although few couples will ever deal with assets of that magnitude, the case highlights a universal point: courts will look closely at intention, conduct and documentation. A prenup (or post-nup) expressly recording that such assets are to remain separate could have prevented years of litigation in Standish. For couples with far more modest homes, savings or inheritances, the same principle applies. Clarity protects both parties.

Dispelling Common Misconceptions

“Prenups are unromantic.”

In reality, they encourage honest conversations about finances. Many couples find the process reassuring rather than pessimistic, because it allows them to set expectations in a calm and supportive environment.

“Only wealthy people need them.”

A prenup can protect a starter home, a pension, a family business or even a small inheritance. For some couples, these are the assets that provide long-term stability—making them more, not less, important to protect.

“Prenups don’t hold up in court.”

Since Radmacher v Granatino [2010], the courts have added significant weight to them where they are fair and properly prepared. They are not rubber-stamped automatically, but they are taken extremely seriously. It is only a matter of time until the law is changed to ensure that pre-nups become legally binding in England and Wales.

A well-drafted prenuptial agreement should not signal mistrust. It is no more unromantic than making a will or arranging life or even household insurance. You will insure a car so why not insure a marriage? Pre-nups should be seen as a form of responsible planning—an agreement reached at a time when both partners are committed to each other and able to consider matters constructively.

Prenups offer couples of all backgrounds the opportunity to decide for themselves how their financial affairs should be managed, rather than leaving that decision entirely to judicial discretion. For those entering marriage with assets to protect, children to consider or simply a desire for clarity, a prenup can be an invaluable financial planning tool.

Further information

Michael Gregory wrote this article, specialising in High-Net-Worth Divorce, International Family Law & Surrogacy and Fertility Law matters based in Manchester and London (click here for profile of Michael Gregory).