Pre and postnuptial agreements
A prenuptial agreement is drawn up by a couple before they marry, setting out their financial arrangements and protecting their separate property or wealth if they divorce.
Same-sex couples may also choose to enter such an arrangement, known as a pre-partnership agreement.
While such agreements are not currently legally binding, the Law Commission has launched a consultation to discuss whether there should be legal reform to make them enforceable in the event of divorce, while continuing to protect the needs of vulnerable spouses and children.
In the meantime, courts have indicated that they will follow such arrangements unless there are good reasons for not doing so. The following criteria will be considered when courts are deciding whether to enforce a prenuptial agreement:
- Did the parties properly appreciate its implications?
- Was either spouse pressurised into signing?
- Was there full disclosure of the relevant assets?
- Have any unforeseen circumstances made enforcing the agreement unjust?
- Would upholding the agreement prejudice the requirements of any children?
If a couple chooses to marry without drawing up a prenuptial agreement, it is still possible for them to set out their financial arrangements in a postnuptial agreement.
As circumstances change throughout a marriage, whether through the birth of children or inheriting wealth, it is advisable to keep any agreements up to date.
For more details on pre or postnuptial agreements, please contact us.