Prenuptial Agreements
Although not strictly enforceable under English and Welsh law, a ‘Prenuptial Contract’ drafted by a Solicitor can be very persuasive within a court setting.
Given the power of the family courts to re-distribute family property and assets and the fact that 42% of UK marriages end in divorce, prenuptial agreements are becoming increasingly common in the UK.
A prenuptial agreement is designed to try and limit any claims on assets by the other party after a marriage breaks down. A prenuptial agreement, so called because its made by a couple before getting married, as to how property and assets should be split - should they divorce, can help to prevent protracted and over acrimonious divorce proceedings enabling you to each go your separate ways quicker and easier.
A Prenuptial Agreement Helps In The Following Situations:
one party has significantly greater capital or income than the other
Where you wish to protect assets you owned before marriage, such as a property or inheritance
One or both of you have children from a previous marriage or relationship and want to protect those assets
Do Prenuptial Agreements Work?
Although used effectively, in other countries, for many years, prenuptial agreements have only begun to be properly recognised by UK courts since 2010. A case worthy of note is that of ‘Granatino Vs Radmacher.’ Katrin Radmacher, a German Heiress, married Nicolas Granatino in the UK in 1998. The couple signed a prenuptial agreement stating that neither party would benefit financially if the marriage were to end; naturally, Radmacher understandably wanted to protect her £106 million fortune.
For the first time in a UK court, the prenuptial agreement was recognised and enforced.
What the prenuptial agreement covers:
What would happen to the family home?
What would happen to property or assets that either of you brought into the marriage?
What would happen to your pensions?
How would you deal with any debts?
Would either of you receive maintenance and, if so, for how long?
Whether you require the agreement to be confidential?
What kind of events would require the agreement to be reviewed?
Who will pay the costs regarding the preparation of the agreement?
Prenuptial Agreement Rules
There are certain rules that must be adhered to in the drafting of a prenuptial agreement; these are as follows:
A qualified Solicitor must be used to draft the prenuptial agreement.
You will both need to consult independent solicitors.
You must both understand the prenuptial agreement’s contents and voluntarily agree to it.
Both solicitors must confirm that the agreement was entered into freely and knowingly.
All assets and property must be fully disclosed by both parties.
The agreement must be signed at least 21 days before the wedding takes place.
At RJS we can work with you to draft a prenuptial agreement that helps to protect your interests whilst avoiding many of the common mistakes associated with such an document.
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A lady client contacted RJS Family Law concerning a Prenuptial Agreement that her future husband wished her to sign.
Her future husband had amassed a considerable property portfolio of several houses and he wanted his future wife to sign a Prenuptial agreement waiving any claim to the properties in the event that they divorce.
On the face of it, this might not seem to have been such an unreasonable request since the whole point of a Prenuptial Agreement is to try and preserve assets and wealth that one enters a into a marriage with. However, there are certain guidelines that need to be followed when formulating a Prenuptial Agreement.
Naturally, the needs and provisions of your partner need to be reasonably catered for, within such an agreement – and in this instance, neither our client or her child would have been due anything!
Furthermore, neither party should feel pressured into signing and any signed (signed by both parties) Prenuptial agreement must have been executed a minimum of 28 days before a marriage (or Civil Partnership) takes place, with both parties having received professional legal advice.
Obviously, in speaking to us, our client was receiving professional advice. However, with a lack of any real provision for her and her daughter combined with the fact that the wedding was just 7 days away, we advised her not to sign.
Thankfully, she followed our advice and refused to sign – with the wedding still taking place.
Whilst Prenuptial Agreements are not legally binding, in the Courts of England and Wales, today, the courts do give serious consideration to a professionally drafted Prenuptial Agreement, that’s not only signed by both parties, but also, one that follows a set of clearly defined guidelines.
RJS Family Law are experts in such agreements. To find out more about the guidelines and how we could help draft such an agreement for you, get in touch:
rachel@rjsfamilylaw.co.uk