Pre-nuptial Agreements

A pre-nuptial agreement (often known as a prenup agreement) is a formal pre-marital written agreement between two partners. The prenuptial agreement sets out ownership of all the belongings including money, assets and property and explains how these will be divided in the event of the breakdown of their marriage.

Want to enter into a prenuptial agreement with your fiancé(e)? Contact our experienced divorce & family law solicitors in Birmingham for legal assistance.

What is a pre-nuptial agreement?

A pre-nuptial (or pre-marital) agreement is an agreement made by a couple before they marry or enter into a civil partnership, which sets out how they wish their assets to be divided if they should divorce or have their civil partnership dissolved. 

What is the legal status of pre-nuptial agreements?

Pre-nuptial agreements are not automatically enforceable in courts in England and Wales. 

Traditionally, pre-nuptial agreements were unenforceable as being against public policy. However, in a landmark ruling in 2010, the Supreme Court ruled that courts should give effect to a pre-nuptial agreement that is freely entered into by each party, with a full appreciation of its implications, unless, in the circumstances prevailing, it would not be fair to hold the parties to their agreement.

The ruling does not make pre-nuptial agreements binding in all cases; the fairness of upholding any particular agreement will be considered by the court on a case-by-case basis. However, some pre-nuptial agreements will now have effect in the absence of circumstances which would make this unfair.

Common reasons for getting a prenuptial agreement

If you are not interested in sharing your assets equally with your partner during the breakdown of marriage then it would be in your best interests to enter into a prenup or postnup agreement even if the agreement is not upheld by the Court.

Money can be an extremely emotive topic in a relationship, especially if you have different attitudes towards spending and saving. A prenuptial agreement provides a clear agreement that can lead to peace of mind for both parties.

The most common reasons for entering into a prenuptial agreement may include the following:

• Assets: There are assets and/or property that would be hard to split 50/50;
• Children: You, and/or your partner, have children from a previous relationship and want to ensure certain assets are reserved for them and protect their inheritance rights;  
• Inherited money or assets: You want to protect inherited money or assets;
• Savings or expected future inheritance: You want to safeguard substantial savings or expected future inheritance;
• Fairness: You want financial issues to be resolved fairly in the event of a marriage breakdown, especially if you've suffered unfairness in divorce courts previously;
• Business: Either party own a business which they'd like to retain control of in the event of the marriage breaking down;
• Debt: If your partner has outstanding debt, a prenuptial agreement with a 'debt clause' can protect you from being liable for that debt.