As much as you might believe your marriage will last forever, sometimes things just don’t work out. Over to Judit Keres, a Senior Associate at Stowe Family Law. www.stowefamilylaw.co.uk
A prenup acts as an “insurance policy”, reducing uncertainty and potential conflict if you break up. Nobody wants to spend their wedding planning thinking about divorce, but prenups give clarity and communication. Here are my five top tips.
Discuss your intentions openly and honestly
Have an honest discussion with your partner to discuss intentions and expectations. You may wish to consider which assets to put in to protect as yours. Agree which assets to share, and provisions made in the event of a relationship breakdown. Think about how future changes in circumstances might affect the agreement. For example, if career paths change, or if you have or adopt children. These factors can influence your prenup because they impact your finances.
Seek independent legal advice in good time
This can take three to six months and depends on the complexity of the agreement. Will you openly disclose everything you have with each other and your solicitor? Or will you seek advice from other professionals such as financial advisors? It is often not a quick process, so seek legal advice as early as possible. This will enable plenty of time to finalise matters before your wedding.
Ensure that the document records your agreement
Typically, one of you instructs a solicitor to prepare a draft prenup, and the other instruct a solicitor to review it. It is common for the document to go through several revisions. This is to ensure the terms are balanced, and reflect what both have agreed. Try not to be alarmed if it takes longer than you expect. The purpose is to create a fair arrangement that both parties feel comfortable with.
Implement any necessary provisions
Many prenups include provisions that require you to take practical steps once you sign the document. For example, the agreement may stipulate how you should own property. It may direct you to put insurance policies in place to protect income or assets, or require you to prepare or update your Wills. Your solicitor will advise you on the practical steps to consider once you sign your prenup; it is important that you deal with these as soon as possible.
Remember to review the agreement
Do not view a prenup as a document you cannot change. Review the agreement periodically — usually every five years — to ensure it still reflects your financial circumstances and family situation. This keeps the agreement relevant and fair, helping it carry more decisive weight if you dispute matters in court upon separation. Strictly speaking, the current law in England and Wales does not make prenups legally binding. However, if you meet certain criteria — such as ensuring the agreement is fair, and entering it freely without undue influence — the court will give it decisive weight if your relationship breaks down.
Planning a wedding shouldn’t mean planning for a divorce, but your financial security is hugely important. The earlier you think about it, the better.
