Prenups – only for celebrities, or sensible and practical?
Most of us have heard of high-profile celebrities who have signed pre-nuptial agreements, more informally described as Prenups. Are Prenups just for the rich and famous or are they a good idea for everyone with assets to protect?
Beresford Kennedy, Head of the Family Law Team at Borneo Martell Turner Coulston LLP explains a little more about why people are choosing to prepare such agreements. He examines some of the good reasons for people to sign such agreements and highlights a few of the potential pitfalls. He explains why these are more common that it might at first appear.
Are prenups only for those in the public eye?
It is easy to see why many think that prenups are for celebrities, the very wealthy or others in the public eye. The reality is that now more individuals are entering into a prenup as a practical step in the process of getting married or entering a civil partnership. As they are private in nature, we are often unaware of people signing these agreements.
Why do people enter into prenups?
There are often very good reasons for doing so.
Common examples of parties who sign up to prenups are those who wish to protect family assets, which might include savings, pensions, owning your own property, ring-fencing inheritance or protecting a family business. If a previously divorced person has suffered a lengthy and costly legal battle, they can readily see the benefit of doing so. It reduces the emotional strain, time and cost in the unfortunate event of the relationship breaking down.
Does entering a prenup indicate a lack of love?
At a very special time, parties often understandably prefer to focus on preparation for the happy day, rather than perhaps more mundane practicalities. However, this means if there is a relationship breakdown the parties may not find themselves on the same page. A prenup can set out clear boundaries for managing what happens next if an unforeseen breakdown of a relationship comes to pass. It can also manage expectations during the relationship itself. Parties sometimes worry that preparing such an agreement might be seen as unromantic. In fact, signing such an agreement can ensure that your loved one is properly provided for in the event of a relationship breakdown.
Are they helpful if you separate?
When a prenup is properly prepared and fair, it is increasingly likely that the terms of such an agreement would be binding. A family lawyer can assist you to ensure that the terms of the agreement are appropriate. There are a variety of factors that have an impact on whether the agreement is binding or not. These include ensuring that the agreement is fair to both parties, that both parties have a proper understanding of the other party’s financial position, that each party enters into it freely, that each party has obtained independent legal advice about it, and that any associated children are properly provided for.
How should you plan ahead?
With all the planning needed for a wedding, it would be easy to leave the prenup to the last minute. Unfortunately, unless the prenup is signed at least 28 days before the wedding day, it may be declared invalid. This is to ensure that both parties have had ample opportunity to consider and take legal advice before considering whether to sign it. Accordingly, it is best to start discussions about this several months before the wedding day.
How much does a prenup cost?
The costs of a pre-nuptial agreement is a small fraction of what it might save you in the event of a divorce, which could extend to thousands of pounds, if not tens of thousands of pounds (depending on your circumstances).
Your family lawyer will ensure that:
- The agreement complies with legal standards;
- Both parties fully understand what they are agreeing to;
- An adequate summary of wealth has taken place; and
- No undue pressure has taken place.
Unfortunately, without professional advice, even the most well-intentioned agreement may not be binding.
How can we help?
Whether you are looking to protect family assets, secure the future for your children, or simply planning responsibly for your marriage, we are here to guide you through the process of putting together a pre-nuptial agreement.
We can prepare a prenup for a party starting from £1,000 plus VAT.
For further information please contact Beresford Kennedy at the Family Law Team on 01604 622101 or email [email protected] Borneo Martell Turner Coulston Solicitors have offices in Northampton and Kettering.
