THE GUIDE TO... FAMILY LAW
PRE-NUPTIAL AGREEMENTS: WHAT ARE THE BENEFITS?
By Rebecca Patience, Senior associate solicitor, Harrison Drury
Pre-nuptial agreements seek to define the financial arrangements between a couple before they get married. A pre-nuptial agreement records the ownership of assets and details what will happen to these assets should the relationship end in divorce.
Once a couple is married financial claims between them are activated. Assets owned in one party’s name may be considered to be “matrimonial assets” following the marriage.
If assets are deemed to be matrimonial then they may be divided between the parties on divorce.
A pre-nuptial agreement seeks to protect assets from this eventuality, classing them as “separate property”.
Although pre-nuptial agreements are not automatically binding under English Law, recent cases have made it clear that the courts should take account of any pre-nuptial agreement when deciding how to divide assets on divorce.
There are many benefits associated with pre-nuptial agreements: They provide clarity and transparency
A pre-nuptial agreement provides couples with a clear understanding of the other person’s financial position. A pre-nuptial agreement also clarifies the parties’ financial responsibilities within the marriage and their intentions and expectations as to how matters should be dealt with on divorce.
A well-drafted pre-nuptial
agreement can reduce the risk of litigation on divorce
They can protect an individual’s personal wealth, pension assets, business assets and inheritance
This is relevant for those with significant assets prior to marriage, or those anticipating large inheritances. A pre-nuptial agreement can record that certain assets are not to be treated as matrimonial assets and can direct how these assets should be treated on divorce. A pre-nuptial agreement can look to safeguard these assets from financial claims on divorce.
They can offer protection against the other persons debts
Pre-nuptial agreements are helpful if one party has a debt that they do not want their partner to be responsible for, should the marriage come to an end. How the debt is to be dealt with can be clearly recorded in the agreement.
They can save time and costs in case of divorce
A well-drafted pre-nuptial agreement can reduce the risk of litigation on divorce, potentially reducing legal costs, and the emotional impact of engaging in contentious divorce proceedings.
Contact our team today 01772 258321 Offices throughout the North West
www.harrison-drury.com LANCASHIREBUSINES SV
IEW.CO.UK
Trusted legal partners to individuals and families
We can help with:
• Divorce Law • Civil Partnerships • Pre and post nuptial agreements • Financial settlement on divorce
• Property and pensions in divorce
• Disputes between unmarried couples
• Child issues Collaborative Law They can provide stability for children
Pre-nuptial agreements can outline any financial arrangements and responsibilities held by both parents, prioritising the stability and well-being of their children.
Signing a pre-nuptial agreement is not the most romantic way to start married life but entering into such an agreement can reduce uncertainty relating to a couple’s finances should the relationship breakdown in the future.
Any pre-nuptial agreement should be finalised no later than 28 days before marriage and it is recommended that pre-nuptial agreements are reviewed periodically, to ensure that they are up-to-date.
Rebecca Patience is a senior associate solicitor in Harrison Drury’s divorce and family law team
35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72
