Many couples find 14 February to be the perfect day for a romantic marriage proposal, so if you find yourself popping the question on Valentine’s Day, you’re not alone.
However, you cannot forget about the importance of protecting your assets just because love is in the air.
Although thinking about the possibility of divorce isn’t a particularly romantic activity, it is nevertheless a vital legal consideration.
What is a pre-nuptial agreement?
A pre-nuptial agreement is set up before a marriage is formalised. It is an agreement between the two partners, designed to set out financial arrangements and protect their separate property in the event of a permanent separation.
It is also possible to establish these arrangements after the marriage has taken place. This constitutes a post-nuptial agreement.
Such agreements are not currently legally binding in the UK but were given legal weight in certain circumstances by the Supreme Court ruling in the case of Radmacher v Granatino in October 2010.
This means that courts are increasingly accepting pre- or post-nuptial agreements as proof of a couple’s intentions should they wish to divorce.
Should I put a pre-nuptial agreement in place?
The decision to put a pre-nuptial agreement in place requires careful consideration by both parties.
For some couples, it would be a pragmatic piece of forward planning that removes potential areas of conflict. For others, setting up such an agreement would be unthinkable.
If there are children from a previous marriage or relationship, their parent may well want to ensure that any money or property that they have at the time of the marriage is preserved for those children, rather than going to their new partner.
What to consider when drawing up a pre-nuptial agreement
There are several factors for both partners to consider when drawing up a pre-nuptial agreement.
First and foremost, both partners should take independent legal advice (and, if necessary, accountancy advice) before entering into an agreement. This protects both partners against any future claim that they were pressurised into entering such an agreement
Couples should also ensure that they:
- Allow plenty of time (at least 28 days before a wedding) for the drawing up of an agreement.
- Are prepared to fully disclose all assets and financial circumstances.
- Make it clear in the agreement what happens to the assets belonging to each partner before the civil partnership or marriage, as well as those accumulated during the relationship (including what will happen to the couple’s home, in terms of who lives there and the division of proceeds if it must be sold).
- Include review clauses (for example, on the birth of a child or in case of an inheritance).
You should always seek professional advice tailored to your own circumstances before entering into any arrangements.
Our dedicated team of family lawyers can help you to ensure that your assets are protected, leaving you to enjoy your wedding day stress-free.
To find out more about how we can help you set up a pre-nuptial agreement, please get in touch.