With spring in the air, wedding season is right around the corner and what better present to receive is the gift of financial protection?
You’re probably thinking you’d rather have that dream holiday or even a new kitchen… However, protecting your financial assets through a Pre-Nuptial Agreement is a sensible option and one you might want to consider.
A Pre Nup isn’t the easiest topic to bring up, especially in the time leading up to your big day. Not only that, but many of us have this misconception that Pre Nups are only for the rich and famous, or feuding families wanting to protect all their wealth. This is entirely false; anyone can have one and often it makes perfectly financial sense to have one.
There’s absolutely no shame in wanting to get a Pre-Nuptial Agreement and they’re becoming even more common now we’re in 2024. Being able to discuss these sorts of matters openly and upfront at with your fiancé(e) shows a level of maturity to the relationship. Many are viewing a pre-nuptial agreement as a sensible document to give reassurance to couples, often on both sides, that they are protected should the marriage break down.
What is a Pre-Nuptial Agreement?
A prenuptial agreement (frequently referred to as a ‘pre-nup’) is a legal document, drawn up before marriage that sets out how assets will be divided in the event of a divorce.
The purpose is to give both parties some clarity and peace of mind. They are becoming more frequently accepted by the courts as long as they are drafted properly, fair and make adequate financial provision for the parties and any children.
Both sides must seek their own independent legal advice before entering into a pre-nup – this ensures that they fully understand the agreement and that everything detailed in the agreement is accurate and correct.
To ensure that both parties have had sufficient time to seek legal advice and reflect on their decision, a pre-nup should be signed at least 28 days before the wedding date. This means that advice on a pre-nup should be taken at an early stage.
Should I Make a Pre-Nup?
A Pre-Nup may not be the most romantic item to tick off your list before you tie the knot, but with divorce rates remaining high and families more complex than ever before, you’ll certainly feel at ease and more secure with your agreement in place.
Here are 5 points that engaged couples might want to consider before deciding on a Pre-Nup:
- You Own your Own Property or Business
Owning a property is a huge asset and not one to be taken lightly. Many couples meet with both parties owning their own house so where you live or whether you keep hold of a second property will be another matter for you to decide on. However, if you have equity in bricks and mortar, put down a sizeable deposit to a home you now share or were gifted money from family members to buy your home, then you might not want this considerable asset to be halved equally should you break up. If either of you owns a business, you might want to keep that separate from marital assets, as it could become very complex if a divorce occurs.
- You Met in Later Life
Meeting later in life can mean you’ve been married before, have children from your former partner or simply have your own wealth you’ve built up solely on your own. When people re-marry or meet someone much later in their lifetime, they may have generated a sizeable pension pot and paid off their mortgage, which can amount to quite a large estate.
- A considerable Finance Gap
It is not uncommon for finances in a relationship to be unbalanced. One person may have started the relationship already having significant wealth from a windfall, inheritance, from savings, pensions accrued early on in their career or buying property at the optimal time. On the other side of the coin, one party may come into the relationship with substantial debt or poor credit or has just not been careful with money over the years. Either way, this imbalance, particularly at the very start of a marriage may be a concern.
- Protecting Inheritance
If a son or daughter is expecting a sizeable inheritance from their parent, sometimes concerns are raised when new partners arrive on the scene and that parent is then looking to re-marry. Perhaps the family wish for the inheritance to remain in the ‘bloodline’ or are wary about losing assets that have been passed down generation to generation should a divorce occur.
- Past Experiences
You might be the cautious type of person who likes to consider worst-case scenarios and have a plan in place should things not last. This can give peace of mind, particularly if you have been stung before or have already been through a separation. ‘Once bitten, twice shy’ as the saying goes.
Or, you maybe you just want to be sensible in protecting your financial assets and have clarity over where you stand.
Trusted Family Lawyers
The friendly and experienced Family team at Lamb Brooks are not just here for the legal implications of divorce and separation but can also assist with people in new relationships, providing carefully though-out advice on cohabitation agreements, prenuptial agreements, postnuptial agreements, children matters, change of names and legal aspects of getting married abroad.
To speak to someone today, please call our office on 01256 844888, email enquiries@lambbrooks.com or speak to our Live Chat Assistant (who is a real person) at any time of day, including at evenings and weekends.
We look forward to providing you with some clarity and peace of mind as you start your married life.