For years, prenuptial agreements have suffered from an image problem. The word "prenup" often conjures images of celebrity marriages, family fortunes and planning for failure before the wedding has even taken place. Yet the reality is very different.
Increasingly, business owners, professionals, investors and families are viewing prenuptial agreements as a sensible part of financial planning. Much like insuring your home, business or income, a prenup is not about expecting something to go wrong. It is about putting sensible protections in place should life take an unexpected turn.
For many, particularly those who have built successful businesses, acquired investment portfolios or received support from the Bank of Mum and Dad, the conversation is no longer whether a prenup is necessary. It is whether they can afford the uncertainty of not having one.
Protecting more than personal wealth
A prenuptial agreement can protect assets owned before marriage, preserve family wealth, inheritances and gifts, safeguard business interests and help ensure children from previous relationships remain provided for as intended.
Just as importantly, it encourages open and honest discussions about finances before marriage. By setting out expectations in advance, couples can make their own decisions about how assets and liabilities should be treated, rather than leaving those decisions to the courts should the relationship break down.
For business owners, this can be particularly valuable. A company often represents years of hard work and may support employees, fellow shareholders and future generations. Protecting that legacy is not about mistrust; it is about sensible stewardship.
A well-prepared prenup can also reduce uncertainty, minimise conflict and potentially avoid significant legal costs associated with contested divorce proceedings.
What happens without one?
Many couples still enter marriage without a prenup, often believing they simply do not need one.
However, without an agreement in place, assets may be divided according to legal principles rather than personal wishes. Pre-marital wealth can become subject to claims, family businesses and investments may be exposed to risk, and inheritances earmarked for children could be affected.
The financial implications can be significant, but so too can the emotional impact. Uncertainty about property, pensions, savings and investments often adds further strain during what is already a difficult period.
In many cases, a prenup is far less costly than the consequences of resolving disputes after a relationship has ended.
Why your will should be part of the conversation
While discussions often focus on the prenup itself, private client lawyers regularly stress the importance of reviewing Wills at the same time.
Marriage is a major life event that can have significant consequences for estate planning.
Questions worth considering include whether property ownership remains appropriate, whether assets should ultimately pass to children or wider family members, and whether a surviving spouse should have the right to remain in a property during their lifetime while preserving the underlying inheritance for future generations.
Families may also need to review guardianship arrangements for children, consider the impact of Inheritance Tax planning and ensure family businesses are properly protected for the next generation.
Equally, following a separation or during or post-divorce proceedings, existing Wills should always be reviewed to ensure they still reflect current intentions. Wills are automatically revoked by a subsequent marriage (unless they were made in expectation of marriage).
Not getting married? Don’t assume you’re protected
Many people are surprised to learn that cohabiting couples do not enjoy the same legal protections as married couples, despite the enduring myth of the “common law spouse”.
This remains the position today, although the Government recently launched a consultation exploring whether cohabiting couples should benefit from greater financial and inheritance rights in the future. While the proposals could lead to significant reform, they are not yet law.
Until any changes are introduced, cohabiting couples should give careful thought to property ownership, declarations of trust, inheritance planning and ensuring a surviving partner is adequately protected. Drawing up a cohabitation agreement should be given significant consideration. Those who separate should also consider whether a joint tenancy should be severed to safeguard their share of a property.
Taking a joined-up approach
The strongest outcomes are rarely achieved through legal advice alone.
Family solicitors, private client lawyers, financial advisers and accountants all play an important role in helping individuals and families protect wealth, plan succession and make informed decisions about the future.
Whether the focus is preserving a family business, protecting an inheritance or supporting the next generation, joined-up planning provides clarity and confidence.
The bottom line
A prenuptial agreement is not about expecting a marriage to fail. It is about thoughtful planning, sensible risk management and protecting the people and assets that matter most.
When combined with a review of your Will and broader financial arrangements, it forms part of a much bigger conversation about safeguarding family wealth, business interests and future generations.
After all, good planning is not about expecting the worst.
It’s about being prepared enough to enjoy the best with confidence.
Thinking about marriage, family wealth or succession planning?
As co-authors of this article, Emma Canham, Senior Associate in Family Law, and Stephen Bell, Senior Associate in Private Client Services at BHP Law, regularly advise individuals, families and business owners on protecting assets, planning for the future and navigating life’s biggest decisions with confidence.
Emma Canham, Senior Associate, Family Law emmacanham@bhplaw.co.uk
Stephen Bell, Senior Associate, Private Client Services stephenbell@bhplaw.co.uk
bhplaw.co.uk