Prenup is Enough.....
Why Pre-Nuptial Agreements Are Increasing in Popularity
Amid the UK’s wedding season there is a noticeable surge in enquiries with couples seeking advice on pre-nuptial agreements. Alongside preparing for their big day there’s now an increasing desire to establish clarity and certainty over individual financial futures.
Understanding Pre-Nuptial Agreements
A pre-nuptial agreement, often referred to as a prenup, is a legal contract entered into by a couple before marriage or a civil partnership. This agreement outlines how assets should be divided in the event of a divorce or dissolution of the partnership. While the concept might sound modern, prenups date back over 2,000 years to ancient Egypt, where couples established the property, each would bring into the marriage.
Rising Popularity of Prenups
In recent years, the establishment of pre-nuptial agreements has seen a significant increase highlighted by the number doubling in 2023 compared to 2022. Despite this rise, an estimated 80% of married couples in England and Wales have yet to consider such measures. That’s around 18 million individuals who are potentially unprotected when it comes to their assets.
Rebecca Silcock, the head of family law at Mogers Drewett, notes that financial arrangements are a primary concern for couples contemplating divorce. By then it’s often too late to arrive at a consensus when considering financial matters and a battle over assets can prove both stressful and damaging to any future relationship they may have hoped to maintain.
Going back to when all things seem rosy, it’s essential to grasp an appropriate moment to have that sensible conversation. The high emotions and stress associated with wedding planning can make last-minute financial discussions counterproductive. Rebecca advises couples to discuss and arrange their financial matters well in advance of their wedding day. A calm, reasoned conversation about finances can provide a positive foundation for their future together. This can take place around a table in an open and collaborative manner.
The Legal Standing of Prenups
In England and Wales, pre-nuptial agreements are not automatically legally binding. Historically, prenups were seen as contrary to public policy. However, a landmark Supreme Court ruling in 2010 changed this perspective. The court decided that prenups should be upheld if they are freely entered into by both parties with a full understanding of their implications unless it would be unfair to do so under the circumstances.
Each agreement's fairness is assessed on a case-by-case basis by the courts. Whilst technically not enforceable a prenup can and often will significantly influence court decisions.
Why Consider a Prenup?
Discussing and formalising financial arrangements through a pre-nuptial agreement can prevent potential disputes and misunderstandings. It helps couples set clear expectations about their financial future, which can be particularly important for those entering a marriage or civil partnership with significant assets, business interests, or children from previous relationships. Rebecca explains that proactive financial planning is beneficial. Addressing these matters early on can lead to a more stable and harmonious relationship, reducing the risk of conflict if the relationship ends.
Conclusion
Pre-nuptial agreements offer couples a way to protect their assets and set clear financial expectations before entering marriage or a civil partnership. With the increasing trend of couples seeking prenups, it’s clear that more people recognise the importance of these agreements. Although not automatically binding, they are persuasive and can be decisive in court, provided they are fair and entered into freely.
For anyone considering a prenup, consulting with a qualified solicitor is crucial by providing the necessary guidance to ensure that the agreement is fair, comprehensive, and tailored to your unique circumstances.
Rebecca Silcock
Head of Family Law
Mogers Drewett LLP
D: 01225 750071
