- Prenuptial agreements: an unromantic ‘no-no’ or a fact of modern life?
Prenuptial agreements: an unromantic ‘no-no’ or a fact of modern life?
Prenuptial agreements: an unromantic ‘no-no’ or a fact of modern life?5th April 2022 - Published by Kuits Family Team
With the impending marriage of Brooklyn Beckham to billionaire heiress Nicola Peltz comes news of their monumental pre-nuptial agreement. The £380 million fortune of Brooklyn’s parents, David and Victoria Beckham, is small in comparison to the £1.3 billion fortune of Nicola’s father, Nelson Peltz, and the couple have taken steps to protect their respective assets.
Pre-nuptial agreements are becoming much more common in England and are no longer exclusively for the rich and famous. Once seen as an unromantic ‘no-no’ or a sign of the intended spouse’s level of commitment to the marriage, prenups are, in reality, about agreeing a fair division of assets based on individual and respective circumstances should the marriage breakdown. The prenup sets out exactly who owns what out of the couple’s assets and then lists how these will be divided up if the relationship should breakdown.
What happens if you don’t have a pre-nuptial agreement?
If you don’t have a prenup in place and you want to end your marriage, the starting position of divorce courts, once the needs and welfare of any children have been met, will generally be to divide everything equally between both parties. If one partner has brought more assets to the marriage than the other, they may find the idea of an equal split hard to swallow. Many couples find it awkward to talk about money and finances while they are married never mind when they are going through divorce proceedings.
Reasons to consider a pre-nuptial agreement
You should consider a prenup if:
- One partner brings unmatched wealth to the marriage.
- You are entering into a second marriage, and you want to protect yours and your children’s assets.
- You have assets that would be difficult to split.
- You have your own business or investments.
- You are expecting money or assets from a future inheritance which you wish to safeguard.
A pre-nuptial agreement can also be used to limit the debt liability of a spouse in the event of a divorce should the other party build up debts.
Are pre-nuptial agreements legally binding?
Although pre-nuptial agreements are not strictly enforceable in UK courts, judges generally give prenuptial agreements significant importance in proceedings and, providing there are no issues, will seek to uphold them.
You can ensure that your pre-nuptial agreement is valid by making sure it has been written up correctly and fairly; Each provision in the agreement must be fair and not favour one party in particular, the agreement must be voluntary and each party must offer full disclosure of assets, liabilities and debts.
Get in touch with a family law expert today
Kuits’ Family Team has significant experience in wealth protection through tools such as nuptial agreements. If you require information about protecting your wealth from the breakdown of a relationship, please contact Senior Associate Madelaine Hailey on 0161 838 7824 or email firstname.lastname@example.org.