With the 2015 wedding season planning in full swing, and bridal fares planned across the UK…have you stopped to think about a prenup? Before you gasp at the anti-romantic notion, our expert Vicky Wright explores the world of prenups and the arguments for and against planning for a split before you even get hitched.
In a Guardian poll in February 2014, 64% of those polled would consider getting a prenup, and with 42% of marriages ending in divorce (ONS, 2010), it’s easy to see why prenups are gaining in popularity.
Worth the paper they are written on?
Prenup Solicitors, Manchester, Didsbury, Northenden
Currently in the UK, prenuptial agreements are not recognised by law, however, they could hold sway over a divorce settlement. Proposals have been put forward by the Government’s law reform advisers to bring legally recognised “qualifying nuptial agreements” into effect. This would mean that couples and civil partners would be able to make a binding agreement about how their property or finances should be shared if their relationship breaks down. Potentially reducing conflict and costs for those seeking to end their union.
Is a prenup for you?
Before you dismiss the idea of a prenup. Have a think about your own circumstances and consider how a break up would affect you and your family financially.
- If this isn’t your first marriage, you may want to preserve your wealth generated to date to benefit any children involved.
- One of you may have substantial pre-acquired wealth that you would like to ring fence.
- Have, or is either of you expecting, to receive an inheritance that you would like to safeguard?
- Has your partner got pre-marriage credit card debts or prior loans? You can protect yourself from being affected by this.
Whatever your circumstances, it’s worth taking legal advice before ‘what’s yours is theirs’.
How to start the conversation
A prenup doesn’t have to be a dirty word. Experts suggest you view the prenup the way you’d view critical illness insurance, unpleasant and hopefully unnecessary. Set out your expectations early on in your engagement and work out whether you think a prenup is for you. You should both receive separate independent legal advice before entering into any agreement.
Are you a Katy or a Katie?
When Katy Perry married Russell Brand in 2010, they shunned the prenup and when they split just 2 years later, under Californian law, Brand was entitled to half of Perry’s £40m fortune (although he reportedly didn’t seek it). At the other end of the scale, the prenup between Tom Cruise and Katie Holmes stated that Holmes was entitled to $3m for every year she was married to Cruise. When they split after 6 years of marriage, she walked away with a very small slice of the actor’s $250m fortune.
Making a prenup, a best practice process.
Make sure your prenup has the best chance of being upheld by the court if challenged on the event of a breakdown:
- Obtain separate, independent legal advice (usually paid for by the economically stronger party).
- Financial disclosure to be provided by both parties, including income, assets and liabilities.
- Give yourself enough time; prenups should ideally be signed 6 weeks before the date of the wedding.
- The agreement must be perceived as fair at the time of the breakdown of the marriage. Nobody can be certain what the future holds, so prenups can be reviewed periodically if required.
Rise of the female
Significantly, although the vast majority of demand for the contracts still comes from men, the number of women had increased fivefold in just three years. In 2011 only three per cent of inquiries came from businesswomen, it is now around 15%.
At Otten Penna, we offer expert advice on Prenuptial Agreements, including Cohabitation Agreements or Pre-Civil Partnership agreements. If you would like to receive any advice or information, please contact us today.
Vicky Wright, Solicitor
Vicky Wright, Solicitor is a member of Resolution and an accredited specialist in Finance and Children, Vicky undertakes all aspects of family law including financial matters arising from the breakdown of marriages and other relationships, divorce and children issues and domestic violence.