Pros & Cons of Getting a Prenuptial Agreement
Over the last decade or so, prenuptial agreements have increasingly been adopted as a method of protecting personal wealth before entering into a marriage, not just by high net worth individuals, but also by those with more modest assets,
But what are the advantages and disadvantages of signing a prenup before getting married? This article explains exactly what a prenup is and the pros and cons of getting a prenuptial agreement for anyone about to get married.
We will also show you how to go about getting a professionally drafted prenuptial agreement for as little as just £699 including VAT.
Contents
What is a Prenuptial Agreement?
Prenups are essentially a contract, entered into by a couple prior to marriage setting out how the assets of each party should be distributed in the event of divorce.
A prenuptial agreement can cover all kinds of different assets, not just property, and can include business interests, inheritance, savings, pensions, and even art for example.
What Is The Main Purpose of a Prenup?
The purpose of a prenuptial agreement is to avoid assets becoming mixed together in the matrimonial pot by setting out who owns what at the outset and demonstrating the intention to keep those individual assets separate.
The broader goal is to reduce the possibility of financial disputes relating to divorce ending up in court.
Pros and cons of a prenup agreement
Pros:
- Transparency and clarity – setting out all the assets of each party at the start of a marriage may help to engender trust, whilst stating who owns what ensures that there is less room for confusion later down the line.
- Future security – since many marriages end in divorce, many people consider getting married a big financial risk. The ability to enter a prenup may sometimes enable a marriage to go ahead which would otherwise be considered too risky.
- Fewer disputes – because intentions are set out right at the beginning, there is less room for dispute if a marriage fails. In the case of arguments regarding the division of assets, both parties can point to the terms contained in a prenuptial agreement.
- Avoid a 50/50 split of assets – Having a prenup drawn up by a solicitor can help you to avoid the possibility of the assets you accumulated before marriage being split 50/50 upon divorce.
Cons:
- Can be seen as unromantic – Some couples will refuse to enter into a prenup as they see it as an unromantic or defeatest way to start a marriage.
- Not automatically legally binding – Although courts will generally take prenuptial agreements into account, they are under no legal obligation to implement any of the terms or instructions within the contract.
Are Prenups Legal in the UK?
Since a landmark ruling in 2010, where a judge in Radmacher v Granatino enforced a Prenuptial Agreement signed over 10 years earlier, they have been given much more authority in the UK.
As a result, prenups meeting certain qualifying criteria provided by the Supreme Court and the Law Commission will usually be upheld in an English or Welsh court if a divorce settlement is disputed.
Therefore, you can be confident that a prenup drafted by a qualified solicitor will most likely uphold the terms of your financial arrangements provided the needs of both parties are met.
How Can I Get a Prenuptial Agreement?
Couples who want to make a prenuptial agreement should first make a list of all their individual assets and decide how they would like these to be divided up in the event of divorce.
One of the key issues a prenup should address is what happens to the matrimonial home; should the property be sold if the marriage breaks down or should one party be allowed to keep it?
The extent of any savings, pensions, shares or business assets should also be stated, along with instructions as to how these should be divided up in the event of divorce.
It’s a good idea to also set out any plans for maintenance payments, especially if one party is in a stronger financial position.
A straightforward prenuptial agreement can be created for little cost here at Divorce-Online, helping you save over £1,000 compared to having a high street solicitor draft your prenuptial agreement.
A professionally drafted prenuptial agreement is always looked upon favourably by UK courts in the event of a divorce. If you would like free advice before using our Prenuptial Agreement Service please call us on 01793 384 029
NB: In order for the court to take prenups into account, both prospective marriage partners should seek independent legal advice before entering into the agreement.
Professionally Drafted Prenup For £699
Don’t spend thousands on having your already agreed prenup put into an agreement. Use our service for £699 and receive a professionally drafted agreement within 28-31 working days.