When you marry or enter a civil partnership, your assets may become matrimonial property. If the relationship breaks down, your spouse or civil partner may be entitled to claim a share of these assets during divorce or dissolution proceedings.
This blog focuses on pre-nuptial agreements (pre-nups) and divorce, but the guidance applies equally to civil partners. Civil partners can draw up a pre-civil partnership agreement (known as a pre-cip) and would dissolve their partnership rather than divorce.
What is a pre-nup?
A pre-nup is an agreement that some couples choose to create before marriage to protect their individual assets. It specifies what each partner owns and how assets should be divided in the event of divorce.
Pre-nups are gaining popularity in the UK as more people recognise they aren’t exclusively for the wealthy. Assets of any value, be that financial, sentimental, or personal, are worth protecting.
Are pre-nuptial agreements legally binding?
While pre-nuptial agreements are not legally binding, courts may take them into account when determining the division of finances and assets in divorce cases.
Do I need a solicitor to draw up a pre-nup if it’s not legally binding?
As pre-nups can be considered by the court, we strongly recommend that agreements be prepared by a qualified solicitor. Demonstrating that you received professional legal guidance before signing your pre-nup also strengthens the chances that the court will uphold or partially uphold it.
How can I talk to my partner about pre-nups?
Planning your wedding is typically a happy and romantic time, which can make discussing a pre-nuptial agreement difficult for fear that your partner might doubt your commitment to the relationship.
As solicitors, we’ve witnessed firsthand the conflicts that can arise when couples divorce without a pre-nup in place. We strongly recommend taking this proactive step to protect your assets and to ensure you’ve had open and honest discussions about your financial situation prior to tying the knot.
Ideally, the conversation needs to take place early on in the engagement, but don’t rush into it as the contents of your pre-nup need to be carefully considered.
Before you talk to your partner, consider why you would like a pre-nup. It could be to:
- Ensure heirlooms stay in your family
- Provide for children from a previous relationship
- Protect yourself from any debts your partner has before marriage or incurs during it
- Safeguard your business, its employees or other owners
- Ensure you’re not disproportionately affected if assets were split equally
- Protect yourself from other county’s laws if you’re marrying someone who is not a UK national or you’re planning to move abroad
Clearly explain your reasons for wanting a pre-nup to help your partner understand that this practical approach protects both of you. Your partner may also realise that they have assets or interests they’d like to safeguard, so let them know they have a say in what is included in the agreement and realise that both of you may need to compromise on some areas.
Find a time when you are both relaxed and can talk privately. Your partner will likely respond negatively if they are stressed or emotions are running high.
If your partner is receptive but not fully convinced, encourage them to conduct their own research and seek independent legal advice. Be aware that the courts will not uphold a pre-nup if there’s evidence of coercion or undue pressure.
What to include in your pre-nup
Your pre-nup should be bespoke to your individual circumstances. It is a financial agreement only, so would not include matters such as access to children.
You can include the following in your inventory and specify how it will be looked after during your marriage and split between you, or retained by you, if you divorce:
- Property you own or jointly own prior to marriage
- Savings
- How any savings will be added to throughout your marriage – you might decide to both put a percentage of your earnings or a set amount of money into a joint account each month
- Savings you hold in a sole or joint account prior to marriage
- Who will be responsible for paying what, such as the mortgage or utility bills
- Debts your partner has before marriage that you don’t want responsibility for settling
- Inheritance or inherited items you have or expect to receive from your family
- Valuable assets such as cars, antiques and jewellery that belong to you
- Sentimental assets that you’re attached to or should remain in your family
- Your pension
- Your business or businesses and how you’d like employees and/or other owners to be protected
- Premium bonds you own
- Stocks and shares you own
- Your income and maintenance or spousal support
How AGR Law can help?
Our experienced team can support you and your partner in all matters relating to pre-nups or pre-cips. Appointments can be made jointly or individually if you prefer.
Please call us on 0116 340 0094 or email hello@agrlaw.co.uk for more information.