If you are engaged you may be considering whether to have a prenuptial agreement.
Prenuptial agreements (also known as prenups) are more common nowadays for people from all walks of life who wish to plan and protect their financial future together at an early stage in their relationship.
Prenups are not only drawn up in anticipation of a divorce. They are also put in place to protect the interests of the surviving spouse, or family, in the event of a death.
A prenup is not right for everyone. If you are a young couple, with no children, marrying for the first time, with no property or significant assets then a prenup may not be necessary.
If yours or your spouse-to-be’s circumstances are not so straightforward you may seek the reassurance of a prenuptial agreement to protect both of your interests and avoid disagreements later on in the marriage.
• You have children from a previous marriage – to protect the inheritance rights of children and grandchildren
• You own your own business or have a family business – so that you can choose for you or your birth family to retain ownership of the business
• You have significant assets such as your own property – to give you control over who should inherit those assets
• You have debts such as credit card debts or a student loan – to protect the debt free spouse from having to take on the responsibilityfor the debt
• You are giving up a lucrative career when you get married – to ensure that you will have compensation for your loss of income if the marriage does not last
Prenuptial agreements are not automatically enforced by the Court if there is a divorce or separation. However in most cases the Court will take notice of the agreement provided
• The agreement has been prepared well in advance of the marriage
• There has been full and honest disclosure of finances from both sides
• There is no evidence of duress
• Both parties received independent legal advice before entering into the agreement
If you are already married a post nuptial agreement may be drawn up which is broadly similar to a prenup.
