Richard Scott, partner and senior solicitor in the Family Law team at Howells Solicitors explains..
As the summer wedding season begins, the team here at Howells Solicitors conducted a straw poll of our clients who are currently using our family law services, asking their thoughts about prenuptial agreements.
Almost 70% of those asked said that they hadn’t considered entering into a prenuptial agreement in the past as they perceived it to be a preserve of the rich.
Richard Scott, partner and senior solicitor in our Family Law team wasn’t that surprised by the high percentage of respondents who hadn’t considered a prenuptial agreement.
However, he was keen to explain that whilst it is true that asset protection of a wealthy person is a common reason for this type of arrangement, the protection works equally well for people in all income brackets.
Richard explains, “The primary reason for prenuptial agreements is to protect assets belonging to one of the parties prior to the marriage. Increasing numbers of people are now marrying for a second and third time and in some cases more. A prenuptial agreement can be used to guarantee certain property or assets will still go to intended heirs and are not caught up in the division of marital property.”
Why should you consider a prenuptial agreement:
- A prenuptial agreement will set out how property will be divided if moving into a partners home where he/she has sole ownership or owning a home as tenants in common
- To protect existing and future inheritance money and assets, business interests and even children from previous relationships
- Should provide peace of mind if you have previously experienced what you consider to be unfair divorce court rulings
Not everyone getting married has large assets. In fact, many people choose to get married despite the fact one party in the relationship has an unreliable finance history. In this situation prenuptial agreements can protect the other party in the relationship from previously accrued debts.
Child custody or contact arrangements cannot be included in prenuptial agreements.
There is a fair amount of confusion regarding the legal status of prenuptial agreements. Richard explains, “Many clients ask us if prenuptial agreements are legally binding at the present time. They are not – despite the headlines. In the fairly recent case of Radmacher –v- Granatino, it was clear the Supreme Court was in no doubt you cannot oust the jurisdiction of the Court.”
Although it is the last thing on your mind when planning your marriage and hopefully spending the rest of your life together, a prenuptial agreement can make the separation and dividing of property and other assets easier for both parties in the unfortunate event of you divorcing.
A prenuptial agreement should be drawn up by a qualified solicitor and both parties should seek their own independent legal advice before willing signing the agreement. Both parties should each keep a copy of the agreement and the solicitor who drafted it will also keep a copy on file.
