Are pre-nuptial agreements the new normal in modern relationships? Our Family Solicitors explore the latest trends, share their observations and reveal 7 reasons why you might want to consider a pre-nup before your wedding.
Whilst most couples aren’t going into a marriage expecting to divorce, it is worth being aware that over the past 50 years, one third of marriages have ended in divorce. Overall, the divorce rate is slowly decreasing year-on-year, however the rate of divorces in the first year of marriage has increased rapidly by 20%. In 2020 over 1,500 couples divorced within their first year of marriage.
What is a Prenuptial 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. 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. Whilst a prenuptial agreement isn’t technically legally binding, they are becoming more frequently accepted by the courts as long as they are drafted properly and make adequate financial provision for the parties and any children. 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.
Attitudes to Pre-Nups and Marriage Have Changed
No longer reserved for celebrities or the very wealthy – many couples with fairly modest assets are entering into pre-nuptial agreements and they are on the rise. In fact, 1 in 5 weddings are starting with a pre-nup according to Marriage Foundation’s research.
Couples are a lot more open nowadays and are not afraid to have frank conversations about their finances, earnings and wishes – perhaps not a topic that many couples discussed when you look back through the decades. This means that couples are more comfortable discussing agreements on what will happen should the relationship breakdown. Thankfully we have come a long way from a time of significant financial inequality when housewives were frequently kept in the dark about the household income or what would happen to them if their relationship broke down.
The average age for women to get married in the UK is 31.5 and for men it is 33.4. Getting married in your 30’s is more common than ever before. For decades, people typically got married much younger in life, typically in their early 20’s and before they had children. Nowadays, people are doing things in a different order which is just a reflection of our time. Women are establishing careers before settling down and couples are finding it much harder to get onto the property ladder, which is often desired before tying the knot, so this pushes back the average age that people are getting married.
There is also a large generation of people who grew up seeing their parents divorce and as a result tend to be sceptical of marriage, or less likely to rush to get married until later in life.
Should I Make a Pre-Nup?
Whilst signing a pre-nup might not at first glance appear to be the most romantic thing for couples to arrange leading up to their big day, with divorce rates remaining high and families becoming more complex than ever before, there are several sensible reasons why modern couples are happy to start their new lives together with an agreement in place.
Every couple will be different and will have their own opinions or concerns. But here are 7 points that engaged couples may want to think about before tying the knot.
7 Reasons to Make a Pre-Nup
- You Already Keep Your Finances Separate & You Want It to Keep It That Way
After you marry, all your assets and finances are at risk of being treated as matrimonial assets. Even though you may have your own bank accounts, savings or investments, for the purposes of a divorce, everything could simply get added to the ‘pot’. Many modern couples have their salaries paid into separate bank accounts and manage their own money. With couples often marrying later in life, it’s possible one party may have come into inheritance which pre-dates the relationship. So, it is a sensible consideration to outline what will happen to certain assets should the marriage breakdown. Particularly if your financial positions are quite different.
- You Own Your Own Property or Business
Many people are eager to get a foot onto the property ladder and often couples will meet with one or both of them owning their own property. 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 one of you owns your own business, you may also wish for this to be ring-fenced from your marital assets so that it can be managed separately and not be tied up in your potential divorce which can make things tricky.
- There is a Considerable Financial 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.
- You Met Later in Life
Family circumstances tend to be more complicated when couples meet later on in life. You might have been married before, had children from a former partner or generally have your own wealth which was built up before your relationship started that shouldn’t become part of your shared marital assets. 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.
- ‘Once Bitten, Twice Shy’
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.
- Protect the Family Inheritance
If you or your partner’s family have significant wealth that you have already inherited or are due to inherit later on in life, then you may wish for this to be kept separate to your marriage. Understandably, families would wish for wealth, property or sentimental items to remain within the family and with many couples divorcing, a prenuptial agreement can help give families peace of mind and certainty on where their family assets are going.
- It Helps the Divorce Process
Should the relationship come to an end, having an agreement in place is like an insurance policy and will make for a much smoother, less contentious divorce. There will be a limited need to negotiate or discuss the finances around the marriage, particularly if it is of short duration and there are no children, and in turn, this will help keep costs of Solicitor’s time to a minimum if you can both reach agreement swiftly.
Interested in Making a Pre Nup?
A solicitor who specialises in Family Law is able to draft a prenuptial agreement and give advice on what can and can’t be included. They can also provide stringent guidance on how best to protect your interests. Prenuptial Agreements can be a sensitive issue, but they can save you a lot of anxiety and uncertainty, allowing you to enter into a new partnership together having boundary lines clearly drawn. A Solicitor should get to understand your particular circumstances and appreciate what your concerns are so that they can offer the best routes for protection.
To have an initial conversation to determine if a pre-nup is the right choice for you, then please call our experienced Family Law Team on 01256 844888 or email enquiries@lambbrooks.com
Need Independent Advice Before Signing a Pre Nup?
If you and your fiancé(e) are talking about a pre-nup or you have been asked to enter into an agreement and would like some advice, then please give our Family Team a call to book in a consultation. They can guide you through the document, de-bunk the legal terminology and make sure you fully understand your legal rights and position before you sign on the dotted line.
Our Solicitors can also give you independent advice on whether the agreement is fair and help with some negotiations or amendments if required.
To arrange an appointment, or just speak to someone over the phone for more information first, then please call 01256 844888 or email enquries@lambbooks.com
Already Married and Regret Not Getting a Pre Nup?
If you are already hitched, but worried about not having a prenuptial agreement in place, then all is not lost! You can enter into a Post Nuptial agreement which is much the same as a prenuptial agreement, it just takes place after the wedding and can be put in place at any time.
Often the run up to the wedding day is busy and stressful and with the strict time limit to make a pre-nup, it is quite common for couples to leave it too late and end up revisiting the idea once they are already married.
Alternatively, people’s circumstances can change – someone could come into a significant inheritance or concerns may arise about the division of assets, prompting couples to have a more serious conversation about what should happen if they divorced.
A post-nup is an effective way to document intentions for the sharing of assets during the marriage and in the event of separation.
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 thought-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.
Other blogs you may be interested in:
Living Together: Why do you Need a Cohabitation Agreement
5 Things You Need to Know if You Are Living Together
Buying Your First Home Together
The contents of this article are for the purposes of general awareness only. The do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.