A prenuptial agreement (often called a prenup) is a formal, written agreement between two partners. The prenuptial agreement sets out ownership of all property, including money and other assets, and explains how it will be divided in the event of a breakdown of their marriage.
Want to enter into a prenuptial agreement with your fiancé (e) and want legal help and assistance for the same? Contact our expert team of family law solicitors in London for fast, friendly, reliable and fixed fee legal services for your prenuptial agreement.
Are Prenuptial Agreements Legally Binding in the UK?
Pre-nuptial Agreements are not legally binding in the UK, but are considered persuasive for the judge to exercise discretion in deciding the financial settlement, giving weight to the pre-nuptial agreement. Pre-Nups, Post-Nups and Pre-Civil Registration Agreements cannot exclude the Court's authority to deal with financial issues arising from a marriage or civil partnership that irretrievably breaks down. When divorce arises, the court has discretionary powers to distribute assets as the Judge sees fit in the best interest of the parties/children/individual circumstances. The prenuptial agreement, which has been entered into fairly and after taking appropriate legal advice, may have persuasive authority for the judge to exercise discretion and give it weight in the distribution of assets.
In 2010, the UK Supreme Court recognised prenups for the first time in the now famous case of Radmacher v. Granatino. Following this ground-breaking case of Radmacher v. Granatino, prenuptial agreements are now afforded heavy evidential weight within the UK Family Court, unless considered to be unfair.
The case of Radmacher v. Granatino involved a German heiress, Katrin Radmacher, and a French investment banker, Nicolas Granatino, who married in the UK in 1998. To help Ms Radmacher protect her £106m fortune in the event of the marriage breaking down, the couple signed a prenuptial agreement which stated neither party would benefit financially from the other if the marriage ended.
The Judges found in favour of Ms Radmacher, and said that the agreement was enforceable because both parties had the benefit of legal advice and it was entered into with full disclosure of each other’s finances at the time.
It was the first time that prenuptial agreements were recognised as enforceable under UK divorce law.
The caveat is that while UK courts will recognise prenuptial agreements, they also retain the ultimate discretion to ignore any agreement reached if it is deemed unfair to any children of the marriage.
What Are The Most Common Reasons For Getting Prenuptial Agreement?
If you are not interested in sharing your assets equally with your partner on the breakdown of marriage, then it would be in your best interests to enter into a pre-nup or post-nup 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 clarity and 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 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.
How Premium Solicitors Can Help With a Prenuptial Agreement?
Our team of family law solicitors will prepare a prenuptial agreement:
- tailored to you and your partner's personal circumstances;
- containing an inventory of each partner's assets;
- giving details of how the assets will be distributed in the event of the breakdown of the marriage;
- (if required) giving details of any post-divorce financial arrangements for children, particularly where one or both partners have children from previous relationships;
- giving independent legal advice.
We have put together a checklist to help your prenuptial agreement have the best chance of being upheld in divorce court:
- To comply with UK law, the pre-nup must be drawn up by a qualified solicitor;
- Both parties must have separate solicitors to avoid any claim of conflict of interest;
- Both parties must fully understand the agreement and voluntarily agree to it;
- Both solicitors must confirm it was entered into freely and knowingly;
- The prenuptial agreement should be signed at least 21 days before the marriage;
- All assets and property must be fully disclosed by both parties.
How Much Do Premium Solicitors Charge for a Prenuptial Agreement?