Nuptial Agreements

Posted 21/10/2012

It is easy to assume that pre-nuptial agreements and post nuptial agreements (agreements entered into after a marriage or civil partnership), are something only the rich and famous need to think about, but this is not the case. At Ashtons Legal, we advise a variety of clients about entering into these agreements.

Looked at in one way, an agreement setting out what is going to happen if your relationship ends can seem unromantic and rather mercenary. On the other hand, it can be viewed as nothing more than sensible financial planning – especially if you have complex family relationships.

So if you are not a film star or a millionaire entrepreneur, why might a nuptial agreement be suitable for you? For a start, having a sensible discussion about finances with your partner, whilst you are together, can be no bad thing. If you are able to set out whilst you are getting on what should happen financially if your relationship does not last, the chances are you are both going to leave the relationship feeling ‘ok’ about the financial outcome.

If you are a business owner, or if you have inherited significant assets before or during the marriage, it is possible to draft an agreement which protects these assets for you. If you are entering into a second marriage, have children from a previous relationship, or are getting married later in life, you may already have significant assets which you do not necessarily want to loose if your marriage does not work out.

It can also be extremely cost effective. Spending a modest sum of money now could save thousands of pounds if your relationship breaks down, both in terms of what assets you might have to give to your spouse and also in legal costs.

The stress of marriage breakdown can also be reduced. If you both already have a clear idea of where you will stand financially at the end of a relationship, it gives you one less thing to worry about, giving you more time to focus on your children and moving on with a new phase in your life. It is recognised that separating from your partner is one of the most stressful things that can happen to you in life, so reducing that stress can only be beneficial in the long run.

In England and Wales, nuptial agreements are not automatically binding (meaning a court does not automatically have to hold people to the terms of the agreement). However, there would need to be a very good reason not to do so. Provided the couple involved understood what they were signing, had the option of seeking legal advice and were not pressured into signing the document, there is a very good chance the court will uphold the agreement. If an agreement does not allow both parties to adequately support their children financially, the court may not stick rigidly to the terms of the agreement, but the fact that the agreement was made is unlikely to be ignored altogether.

It is important you have legal advice before entering into an agreement so that you can do so with a full understanding of how what you are signing might impact on your financial position in the future.

Please contact us if you would like to know more about nuptial agreements.