By Catherine Lowther, Managing Associate, Swinburne Maddison LLP
As Valentine’s Day approaches, many lovedup couples will be focusing on planning their wedding day, having celebrated their engagements during the season of love.
Engagements and wedding planning, while romantic and exciting, come with significant costs. Amidst ongoing financial pressures within the current economic climate, many engaged couples are now considering the practicalities and financial implications of marriage, beyond choosing floral arrangements and wedding cakes.
While considering the financial aspects of marriage may not sound particularly romantic, prenuptial agreements (‘pre-nups’) can play a crucial role. Often thought to be reserved for the rich and famous, prenups offer sensible financial planning and protection in various situations, such as if:
– You have pre-acquired wealth.
– You own your own business.
– You anticipate a sizeable inheritance in the future.
– You or your partner has significant debts.
– This is a second marriage.
The purpose of a pre-nup is to agree, at the outset of the marriage, on how finances would be divided in the unlikely event of separation or divorce. It is widely considered to be a sensible step, as such agreements can help alleviate some of the stress associated with resolving finances in the event of a relationship breakdown.
Are they worth the paper they’re written on?
It is important to remember that in England and Wales pre-nuptial agreements are not legally binding. However, such an agreement will carry weight in the event of a separation or divorce if:
– Each party has received independent legal advice regarding the terms of the agreement.
– There is transparency between the parties (it is best practice to obtain full disclosure of each party’s assets prior to completion of the agreement).
– The document is entered into freely (no pressure can be placed on one party to enter such an agreement).
– The document is periodically reviewed and amended if required, for example upon the birth of a child.
Is it for me?
There is no “one size fits all” approach to drafting pre-nuptial agreements. Pre-nups should be signed no later than six weeks before the wedding, so it is crucial to seek legal advice at an early stage.
For more information and advice contact Catherine Lowther, Managing Associate, cel@swinburnemaddison.co.uk,
0191 3842441