Your top pre-nuptial questions answered by Moore Barlow.
A pre-nuptial agreement offers clarity and protection, ensuring that both parties enter into marriage with a clear understanding of financial arrangements. Whether you have substantial assets, inheritance considerations, or a family business to safeguard, a well-crafted pre-nuptial agreement can provide the security you need.
What is a pre-nuptial agreement?
A pre-nuptial agreement is a contract entered into by a couple before marriage. It is known as a pre-partnership agreement for those entering into a civil partnership. It sets out the financial terms in the event of separation, covering assets such as property, savings, investments, pensions, personal belongings and sometimes income. If circumstances change post-marriage, it can be modified with a post-nuptial agreement.
Are pre-nuptial agreements binding in England and Wales?
While not automatically binding, the court will take them in to account provided the following safeguards are met:
- There has been sufficient financial disclosure to allow the financially weaker party to understand what they are giving up.
- The financial outcome is fair.
- Both parties’ needs are met in terms of capital and income.
- The agreement should be signed no later than 21 days before the wedding.
Why are prenuptial agreements becoming more popular in the UK?
The landmark case Radamcher v Granatino (2010), set a precedent in recognising pre-nuptial agreements in the UK. The Supreme Court ruled that, if entered into freely with full understanding, courts should uphold such agreements unless doing so would be unfair.
Can a pre-nuptial agreement be contested in court?
Yes, in England and Wales, upon a divorce the court will always have the final say it is not possible to override that. Where there is a pre-nuptial agreement, and one party does not want to be held to it the court will usually deal with that issue first. The court will look at what financial information was provided, whether the outcome would be fair, whether the outcome would meet housing and income needs and when it was signed.
The impact of a pre-nuptial agreement is to be determined by the court. In many cases it will have a substantial impact on the outcome.
Can a prenuptial agreement protect assets acquired before marriage?
Yes, this is often the main reason for entering into a pre-nuptial agreement. We refer to this as ‘Separate Property’ and property doesn’t just mean land or buildings, it can be any asset. You can also specify how property acquired during the marriage will be divided.
Can a prenuptial agreement include provisions for future earnings and assets?
Yes, a pre-nuptial agreement Is often used to protect future inheritance. You can use a pre-nuptial agreement to protect income. It is important to remember that needs must be met upon a separation so if one party cannot support themselves (be that short term or long term) the court will not be prevented from ordering maintenance.
Can a prenuptial agreement protect a family business from division in a divorce?
Yes. Pre-nuptial agreements are often used to protect family businesses and prevent an ex from being involved in a business in the future.
What role does a prenuptial agreement play in spousal maintenance arrangements?
It is possible to specify in a pre-nuptial agreement that there should not be any spousal maintenance, this is known as an income clean break. It is also possible to specify that if there is to be maintenance it should be limited but where there is no provision for maintenance, this is unlikely to be upheld if that would be unfair and/or if the other party cannot meet their outgoings.
How does a prenuptial agreement impact the division of pensions upon divorce?
It depends what provision there is for pensions in the agreement. It can avoid a lot of disagreement and negotiation to agree how pensions should be shared. It is also useful to set out any pensions acquired before the relationship which should not be shared.
How Moore Barlow can help
Pre-nuptial agreements are highly specialised legal documents requiring expert guidance. At Moore Barlow, we craft bespoke agreements tailored to your individual needs, ensuring clarity, protection, and compliance with legal standards. Taking independent legal advice is crucial. Our experienced Prenuptial & postnuptial agreement solicitors are here to guide you every step of the way.
