Prenups could become legally binding

Posted 27/02/2014

The BBC reports today that under proposals for a new law being put forward by the Law Commission, pre-nuptial agreements could become legally binding.

The aim behind the proposal is to make it easier for couples to manage their finances after a relationship breaks down.

Currently, pre-nuptial agreements (pre-nups) may be taken into consideration by the courts, but they are not legally bound to uphold them. Although in the past pre-nups have been perceived to be a celebrity phenomenon, popularised by celebrity couples such as Tom Cruise and Katie Holmes and Brad Pitt and Angelina Jolie, in recent years, many couples have seen the benefits pre-nups can hold.

This move would see pre-nups becoming even more significant, particularly for couples who are marrying later in life when they have amassed more wealth, or for couples marrying for the second time.

If the law is passed, married couples and civil partners in England and Wales would be able to legally agree the financial settlements contained within a divorce before marrying. This would include how property and finances should be shared and how children should be provided for should the couple split. The law would also apply to post-nuptial agreements.

Stephen Williams, Head of Ashtons Legal’s Family team, comments: “This move would help to make the divorce process much less painful, particularly for those who are entering a second or even third marriage and wish to protect the interests of their children. It also applies to those who may come into an inheritance during the marriage or who have pre-marital assets they would wish to protect. It would make it much easier for us as lawyers to provide clear advice to our clients about how effective pre-nups will be in the future.”

Please contact our Family team for further information and advice.