Guide To Prenuptial Agreements in the UK

What Is a Prenuptial Agreement?

In the UK, a prenuptial agreement (‘Prenup’ for short) is a legal marriage contract entered into by a couple before getting married. It records each partner’s rights concerning property and assets in the event of a divorce.

Having a prenup agreement drawn up can help remove uncertainty and costly legal battles in the future by making it clear from the outset what is to happen to money and assets within the matrimonial pot.

If your marriage breaks down in the future and you do not obtain an agreement of this nature, you are leaving it down to the courts to determine what you are entitled to in a divorce settlement.

Many couples are reluctant to enter into a prenup contract as they see it as starting off their marriage with the wrong image or intentions.

However, if you have current assets or expect to acquire assets in the future, maybe from an inheritance or trust fund, and you wish to protect them it’s sensible to discuss this with your partner in advance.

If you are marrying for the second or third time and have children from a previous marriage you may wish to protect assets or a business that you want to leave to them.

Are prenups legally binding in the UK?

In the UK, a prenup is not automatically legally binding in England and Wales in the sense that a court is not compelled by law to uphold them.

However, since 2010 prenuptial agreements have become more accepted and these days they will generally be upheld by a court so long as they meet certain qualifying criteria as set out by the Supreme Court and Law Commission:

• The agreement must have been entered into freely and judged to be fair
• The implications of the agreement must be fully understood by both parties
• The agreement must have been made a minimum of 28 days before the wedding
• There should be full disclosure about any wider financial circumstances
• Both parties entering into the agreement must have received independent legal advice
• The agreement should not prejudice any children the couple has at present or may have in the future
• The needs of both parties must be met and the agreement must be contractually valid

Who should be considering a Pre-marital Agreement?

We have highlighted five specific reasons why a couple may decide to enter into a prenuptial agreement:

1. There is a disparity in wealth between the parties – It’s common for one party to want a prenuptial agreement if they are entering the marriage with considerably more wealth. Without a prenup, they would stand to lose more than the other spouse in the event of a divorce and a division of assets.
2. There is a future inheritance for one party – Safeguarding a future inheritance is one of the most common reasons for wanting a prenup if one spouse is expecting to receive a future inheritance.
3. One party has a business to protect – If one party to the marriage owns a business this can be seen as an asset that would form part of the ‘matrimonial pot’. Obtaining a prenup will enable the business owner to place it outside of the ‘pot’ and safeguard not only their interests but those of other stakeholders and employees.
4. Pass assets to children from prior marriages – The agreement you reach can dictate the rights of children from a previous marriage regarding property or assets should the marriage break down. The most common clause in this respect is for property owned before marriage.
5. Prevent debts from becoming jointly owned – If your partner brings debt with them into the marriage, you can include a debt clause in the contract. The agreement doesn’t just protect you against existing debt, it can also go some way to protecting against debt liability should either spouse build up debts during the marriage.

How much does a prenup cost UK?

The cost of a prenup from Divorce-Online is just £699 fixed fee with no hidden or extra costs. The cost of a prenuptial agreement from a traditional high street solicitor can be upwards to £1800 plus VAT; you can expect family law lawyers in London to charge even more!

Divorce-Online uses state-of-the-art technology which makes getting information from you much simpler. This drastically reduces the amount of time our solicitors spend extracting the basic information from you for each legal document.

Unlike high street solicitors, you aren’t required to visit our offices or attend meetings to provide basic information and this enables a more straightforward and efficient service.