Difference Between Prenup & Post Nuptial Agreements
Prenup agreements and post nuptial agreements in the UK have gained popularity over recent years, particularly amongst high net worth individuals, as a means of protecting their wealth when getting married.
So, what is a prenup and just how do they work and what is the difference between pre and post nuptial agreement in the UK?
The most important distinction between a prenuptial agreement and a postnuptial agreement is that you can only get a prenup before you are legally married, but you can get a postnup any time afterwards.
In this article we will delve further into prenups and postnups. Find out if they are equally effective, what can be included in them and how to get one without spending thousands of pounds on legal fees with a high street solicitor.
Contents
What is a prenuptial agreement?
Prenuptial Agreements are essentially a contract, entered into by a couple prior to marriage, which sets out how the assets of each spouse should be distributed in the event of divorce.
But in brief terms, prenups can cover all sorts of assets, including property, savings, pensions and high-value art and jewellery.
Their primary purpose is to avoid these assets becoming mixed together in the overall matrimonial pot by:
- Setting out who owns what at the start of the marriage.
- Demonstrating the intention to keep individual assets separate.
The overall goal is to reduce the possibility of financial disputes relating to divorce ending up in court.
What is a postnuptial agreement?
What is a postnuptial agreement? A postnuptial agreement is also a contract that sets out how the assets of each spouse should be distributed in the event of divorce, but it is entered into by a husband and wife who are already married.
Postnups can cover all the same sorts of assets as prenups (ie property, savings, pensions and high-value art and jewellery etc).
And the main goal of postnups is similarly to avoid assets becoming mixed together in the overall matrimonial pot and to reduce financial disputes further down the line in the case of divorce.
What is the difference between prenups and postnups?
As we can see above, prenuptial and postnuptial agreements are almost identical.
The only difference – and it is a crucial one – is that prenups are entered into before marriage whereas postnups are formed after marriage (and while the couple is still married).
It is advisable that both pre and post nuptial agreements are reviewed every few years to check that they take account of the latest situation (eg if there has been a material change of financial circumstances).
Please note: If a prenuptial agreement needs to be changed or updated after you are married, it will be superseded by a new agreement called a postnuptial agreement.
Which is Better Prenup or Postnup?
Are Prenups & Postnup Agreements Equally Effective? Since prenups are agreed upon before marriage, it can be easier to decide who owns what while both spouses are leading independent lives.
After being married for some time certain assets become more difficult to separate, it can therefore be more difficult to create a postnuptial agreement.
However, once agreed upon, and provided the necessary steps have been taken to ensure the court will take the agreement into account, both prenups and postnups are equally as effective.
Are prenups and postnups treated equally by the law?
Prenuptial and postnuptial agreements are not legally binding in the UK. Courts are not required to follow them and they can determine how any assets should be divided irrespective of intentions set out in these agreements.
However, courts will generally take them into account – and the Supreme Court, in the case of Radmacher v Granatino held the following:
“The court should give effect to a nuptial agreement that is freely entered into by each party with a full appreciation of its implications unless in the circumstances prevailing it would not be fair to hold the parties to their agreement.”
Therefore, prenuptial and postnuptial agreements are both useful to have, and the court will generally pay heed to the contracts if they have been created properly.
What can be included in both legal agreements?
Some of the common elements of pre and post nuptial agreements include:
- Matrimonial home
- Property portfolios and inheritances
- Maintenance payments (eg if one party is in a stronger financial position)
- Savings, shares and pensions
- Business assets
- Debts
- Personal valuables (eg jewellery)
How do you make pre and postnuptial agreements?
Couples who want to make either a pre or postnuptial agreement should decide how they would like all their individual and joint assets to be divided up between them in the event of divorce.
If one spouse is in a stronger financial position, they should also consider how maintenance payments would work in the long run.
Once the main points have been agreed upon, it is easy for any couple to create a straightforward nuptial agreement online with Divorce-Online.
We provide a fixed-fee Prenuptial Agreement Service and a Postnuptial Agreement Service – both of which serve the needs of most people for just £699 including VAT.
Using Divorce-Online can help you save over £1,000 compared to having a high street solicitor draft your agreement.
Please note: It is important that both parties obtain independent legal advice before entering into either a prenup or postnup agreement. Furthermore, they should not feel under duress when they sign the contract.
In the absence of independent legal advice, or if there is any sign of duress, it is likely the court will not take prenups or postnups into account.
If you have any other questions regarding your divorce then please do not hesitate to get in touch with us. One of our highly qualified advisors will be more than happy to help, 01793 384 029.
Prenuptial Agreement Service – £699
This service is ideal for couples that want to obtain a prenuptial agreement before marriage, without spending thousands of pounds on lawyers’ fees. The agreement is drafted by qualified solicitors and will be presented to you within 28-31 working days.
Prenup vs Postnup?
Do you need a prenup or a postnup? As we have mentioned above, prenup and postnup agreements are almost identical. The crucial difference being whether you are already married or not.
If you already have a prenup it’s advisable that your agreement is reviewed every few years, particularly if there has been a material change in financial or family circumstances.
If a prenuptial agreement needs to be changed or updated it will be superseded by a postnuptial agreement.
Postnuptial Agreement Service – £699
Obtain a solicitor drafted Postnuptial Agreement for just £699 including VAT without needing to visit our offices or attend court. Everything can be completed online by qualified family solicitors.