An estimated 32.7 million Brits will be celebrating Valentines Day today and around 10% of the celebrations will result in marriage proposals.

One thing to consider when planning a wedding is whether to enter into a Prenuptial Agreement. A Prenuptial Agreement is a contract between two people intending to get married or enter into a civil partnership. It outlines how their finances, including assets and debts, will be managed during the marriage and distributed if the relationship breaks down.

Following a marriage proposal and whilst in the first blooms of love, a separation may be the last thing on your mind, the startling reality is that 42% of marriages end in divorce and so it is sensible to consider whether a Prenuptial Agreement is right for you in the unlikely event that the marriage does not endure. Of course you should always marry for love, and never for convenience. Some may consider it naïve, rather than cynical not to protect pre- matrimonial assets in the event of a divorce.

When people hear the term “Prenuptial Agreements”, they often think of wealthy individuals protecting their family fortunes. However, prenups are not just for the rich and wealthy – they are valuable to anyone entering a marriage.

There most common reasons people choose to enter into Prenuptial Agreements are:
• Protection of Assets: If you own a property or have substantial savings, a prenup can protect your assets in the event of a divorce;
• Previous Marriages: Those who have been married before might wish to safeguard certain items for children from their prior relationships;
• Business Safeguards: Entrepreneurs and business owners often worry about what might happen to their company if a relationship breaks down; or
• Future Inheritance: Many people use these agreements to ensure that anticipated inheritance remains separate property.

Although the Agreement does not prevent a spouse from applying to the Court for financial provision from the other spouse upon divorce, a Prenuptial Agreement will be a relevant circumstance of the case and will have a substantial impact on the Judge’s decision. If fair, the parties should expect the terms to be upheld.

For a Prenuptial Agreement to be considered by UK Courts, several key conditions must be met. Both parties must declare all assets and liabilities to ensure transparency. Each partner must receive independent legal advice so that they understand the terms of the agreement. It is advisable to do this 5 or 6 months before the legal ceremony as the agreement itself should be executed at least 28 days prior to the ceremony, after both parties have had legal advice.

The agreement must be freely entered into without any pressure from each other or anyone else and the terms should not be blatantly unfair or heavily one sided. A Court is unlikely to uphold an agreement that does not cater to the needs of both parties. Prenups should also be reviewed upon a change of circumstances which could include children being born, inheritance, financial windfalls etc., all of these things could affect the circumstances in which Prenuptial Agreements could be tested.

Our specialist lawyers are always happy to speak to people in these situations to make sure they have a complete picture and understanding of the options available to them. Whilst we hope that you will never need to rely on a Prenuptial Agreement, having one in place ensures that assets can be distributed in a fair and non-confrontational way, should the unthinkable happen.

If you would like to discuss pre-nuptial agreements further please contact Chloe Langdon or Emma Rothstein on 0208 949 9500 or by email - clangdon@pearsonhards.co.uk or erothstein@pearsonhards.co.uk.