Prenuptial Agreement UK – What Is It & Are They Valid?

What Is a Prenuptial Agreement?

In the UK, a prenuptial agreement (Prenup for short) is a legal written contract signed by a couple before marriage that determines how the assets (property and financial responsibilities) would be split should the marriage end in a divorce.

Prenups are recommended for couples getting married or entering into a civil partnership who want to keep assets owned before marriage in separate names.

Prenuptial agreements are one of the ways that couples can ‘ringfence’ any assets they are bringing into the marriage, including businesses, future inheritances, and even family commitments to children from previous relationships.

A prenup has to be signed a minimum of 28 days before your wedding date, not just before you walk down the aisle. This is to ensure that neither party was coerced into signing the agreement.

Prenuptial agreements are designed to protect each person’s assets and financial interests should the marriage break down and in doing so, help couples avoid costly court battles over financial disputes.

Making a prenup can provide a couple with a level of certainty against the risk of divorce by outlining each party’s financial rights and obligations instead of leaving it up to a Judge to decide who gets what.

Here are some key reasons to consider a prenup:

1. When there is a wealth disparity between partners.
2. To protect future inheritances.
3. To safeguard (ring-fence) assets like businesses or investments.
4. To ensure children from previous relationships are financially protected.
5. To prevent debts from becoming jointly owned.

Without a prenup, assets acquired during the marriage are typically considered joint property and subject to division upon divorce. This can lead to an equal division of assets, which may cause conflicts if one party brought significant assets into the marriage and feels entitled to more than half.

A prenuptial agreement can provide clarity and protection by outlining how assets will be divided in case of divorce, especially when there is a wealth disparity between partners or specific assets like businesses or inheritances need protection.

Are prenup agreements legally binding in the UK?

In England and Wales, prenuptial agreements are not automatically legally binding.

However, since the 2010 case of Radmacher and Granatino, courts in the UK are more likely to uphold prenuptial agreements if they are freely entered into by both parties with a full understanding of their implications.

For a prenuptial agreement to be legally binding, you must meet the following qualifying criteria:

• Be a valid contract, meaning it needs to be entered into free of undue influence or misrepresentation;
• Contain a statement signed by both parties confirming that they understand the agreement will partly remove the courts’ discretion to make financial orders;
• Must not be made within 28 days immediately before the wedding or celebration of civil partnership.

In addition to these conditions, at the time of making the prenup, each party must have received:

• Full financial disclosure of material information about the other party’s financial circumstances;
• and independent legal advice from a family law solicitor to understand your legal position and the implications of signing the agreement.

How Much Does a Prenup Cost?

Costs for preparing a prenup can range from £1,000 to £5,000 plus VAT when instructing local family law solicitors.

Some firms such as Divorce-Online offer fixed fee packages starting from £849 including VAT.

The total cost of preparing a prenup will depend on the complexity of the agreement and the legal professionals involved.

With our service, you don’t need to visit our offices or attend meetings. You can send us all the basic information we need via a simple online form.

A prenuptial agreement should cover financial matters only. If you cover anything outside of financial matters, a Judge may decide not to consider the prenup.

This means that your prenuptial agreement should not include:

• Decisions around child support or child custody
• Lifestyle matters
• Outlining domestic duties
• Anything that prejudices the needs of a child of the family
• Different financial outcomes based on the reason for divorce, e.g. adultery

Can You Make a Prenup Online Without Solicitors?

You can make a prenup online using a free template, but it may not be wise if you include clauses in your written contract that concern businesses, inheritance, property, and clauses to protect children from previous relationships.

Free templates are not likely to be upheld by a judge if challenged in court, so by all means use them for guidance, but don’t expect a Judge to enforce it.

Here are more reasons why using a free template is not advised:

1. If it comes to enforcing your prenup in court, a Judge is likely to question its validity.
2. Both parties are required to receive professional legal advice, which is not included in a template.
3. Only family law solicitors can draft the necessary legal terms and clauses required to make a sound legal contract.

Read our article on writing your own prenup before attempting to do it yourself; It may save you time, stress, and a lot of money.

Looking to enter into a prenup before marriage but don’t want to spend thousands on legal fees? View our online prenup service for £849.

It can not only help you save money, but it’s also more convenient and efficient than instructing local solicitors.

What is the difference between a prenuptial agreement and a postnuptial agreement?

Prenups are entered into before a couple gets married or enters into a civil partnership. It outlines how their assets and finances will be divided in the event of a divorce or separation.

On the other hand, a postnuptial agreement is a legal contract that couples enter into after they are already married or in a civil partnership.

The main difference is that a postnup is entered into after the marriage has already taken place.

Post-nuptial agreements can be used to address changes in financial circumstances, inheritances, or the desire to protect certain assets acquired during the marriage.

How long before a wedding should a prenup be signed?

A prenup should be signed and completed at least 28 days before the date of marriage.

The court will be reluctant to uphold a prenup that was not signed well in advance of marriage.

If you can’t sign a prenup before tying the knot, the better option might be to have a solicitor draft a postnup agreement after you’re legally married.

The Benefits of Signing a Prenup

Here are five specific scenarios when getting a prenup agreement drawn up could be beneficial:

1. There is a disparity in wealth between the parties – It’s common for one party to want a prenuptial agreement if they are entering the marriage with considerably more wealth. Without a prenup, they would stand to lose more than the other spouse in the event of a divorce and a division of assets.
2. There is a future inheritance for one party – Safeguarding a future inheritance is one of the most common reasons for wanting a prenup if one spouse is expecting to receive a future inheritance.
3. One party has a business to protect – If one party to the marriage owns a business this can be seen as an asset that would form part of the ‘matrimonial pot’. Obtaining a prenup will enable the business owner to place it outside of the ‘pot’ and safeguard not only their interests but those of other stakeholders and employees.
4. Pass assets to children from prior marriages – The agreement you reach can dictate the rights of children from a previous marriage regarding property or assets should the marriage break down. The most common clause in this respect is for property owned before marriage.
5. Prevent debts from becoming jointly owned – If your partner brings debt with them into the marriage, you can include a debt clause in the contract. The agreement doesn’t just protect you against existing debt, it can also go some way to protecting against debt liability should either spouse build up debts during the marriage.

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Are prenuptial agreements valid in the UK?

You may be asking yourself, is a prenup worth it if they aren’t automatically legally binding?

To help answer this important question, we’re going to look at recent case law on prenups to help you understand what you must do to make your contract legally binding.

In conclusion, while prenuptial agreements are not automatically legally binding in England and Wales, the case law indicates that courts are increasingly willing to uphold them, provided they are entered into freely, with full financial disclosure and independent legal advice, and they are deemed fair at the time of the divorce.

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Common Misconceptions and Myths

One common misconception about prenuptial agreements is that they are only for the wealthy.

While it is true that wealthy individuals may be more likely to have prenups, anyone can benefit from having one.

Another misconception about prenuptial agreements is that they are inherently unromantic.

While discussing finances may not be the most romantic topic, it is an important one to have before getting married.

By having a prenup, both parties can feel more secure and confident in their financial future together.

Prenuptial Agreement Myths to Stop Believing

Summary, Advice & Next Steps…

In summary, prenuptial agreements in England and Wales are a way for couples to outline their financial arrangements and protect their assets in the event of divorce or separation.

If you’re still unsure whether entering into a prenup is a good choice, you can read our free PDF guide on prenups.

Seeking independent legal advice, considering the unique financial circumstances of both parties and ensuring fairness in the agreement are key factors in their effectiveness.

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