What is a pre-nuptial agreement and why do you need one?

Leicester Law Firm AGR Law explains it all.

AGR Law's Director and Solicitor Gina Samuel-Richards tells us all you need to know about pre-nups

A pre-nup, or pre-nuptial agreement, is a written agreement some couples make prior to getting married. AGR Law's Director and Solicitor Gina Samuel-Richards tells Niche News all you need to know.

Couples entering a civil partnership can follow the same process and draw up what is known as a ‘pre-cip.’ Where we refer to divorce between a married couple in this article, a couple would dissolve a civil partnership.

Both agreements set out assets you and your future spouse own before you formalise your relationship, or you expect to own afterwards, and how they will be divided should you divorce or dissolve your civil partnership.

Are pre-nups legally recognised?

No, pre-nups are not legally binding, but the court considers them when making decisions about your finances and assets if your relationship breaks down and you get divorced. For this reason, they need to be drawn up by an experienced solicitor.

Demonstrating that you have taken legal advice prior to signing your pre-nup also increases the likelihood of it being upheld, or partially upheld, by the court.

Are pre-nups just for rich people?

No, they are not just for rich people. Although often associated with high-profile celebrities marrying less or similarly wealthy spouses, pre-nups are becoming more common amongst people in any financial circumstance. It’s a common misconception that assets must be of high value to be included in a pre-nup.

Do I need a pre-nup?

• Although you are not legally obligated to create one, we recommend considering it based on your circumstances. Once you are married, all assets owned by you and your new husband, wife or civil partner become matrimonial. This means your spouse has a claim on your assets.

• You may wish to consider a pre-nup if you want to:

• Ringfence specific items to stay in your family, such as heirlooms

• Protect any children you have from a former relationship

• Protect yourself from being liable for any debts your partner has or incurs

• Safeguard any significant assets, such as your business and its employees and

  other owners

• Marry someone who is less wealthy than you, or you would expect to become less wealthy, and you would be disproportionately affected if assets were split equally. Wealth can be current or anticipated earnings, inheritance, savings, property, investments or other forms of financial interests

• Move abroad or marry someone who is not a UK national, and you may be affected by their home country’s laws

Doesn’t planning for your relationship to fail this way show doubt?

You may feel considering what will happen if your relationship breaks down is pessimistic or unromantic, but we recommend it is sensible to plan your future this way.

Your future spouse might be concerned that it indicates you’re uncertain about the longevity of your relationship, but your pre-nup would only need to be used should the marriage fail. If the relationship remains happy, you will never need to mention it again.

Having a pre-nup also means you are entering marriage with reduced uncertainty after practical, honest and open discussions have taken place and both of you have disclosed your financial situation fully.

How AGR Law can help?

We recommend taking advice from our experienced team on all matters concerning pre-nup or pre-cip agreements. Appointments can be made jointly or individually if you prefer.

Please call us on 0116 340 0094 or email hello@agrlaw.co.uk for more information.