Prenuptial Agreements: Everything You Need To Know
It can be expensive to host a wedding. The value starts to increase with engagement, rings, flowers, clothing, locations, honeymoons, and more.
Prenuptial agreements, which were traditionally seen negatively, are now commonly associated with marriage. It is now accepted because of the significant changes in couples’ attitudes toward money and assets in the modern era.
Prenuptial agreements are widely used and are no longer just for famous people and the extremely wealthy. They are now a common component of wedding planning.
Continue reading this article to learn more about prenuptial agreements at Gillbanks Family Law.
What is a Prenuptial Agreement?
A prenuptial agreement, also called a “premarital agreement,” is a legal contract between two people that is made and signed before they get married.
The agreement will cover each person’s money, assets, property, etc., and explain in detail how these things will be split in the event of a divorce.
Is it legally binding?
In family court in the UK, a prenuptial agreement now carries significant weight as evidence. This is mostly because of the Radmacher v. Granatino case, which was the first time that a prenuptial agreement was fully recognised under British divorce law. They are not yet legally enforceable here in the UK as they are in other countries but certainly are now being considered in divorce settlements under other circumstances and more and more are being followed especially when needs are clearly met and where there are foreign connections and or property and assets in other countries. There are many situations where a pre-nuptial agreement is beneficial. The weight to be considered on divorce can also be added to by repeating the agreement after marriage in a post-marriage agreement and updated regularly throughout the marriage.
Does a prenup work for you?
Talking about prenuptial agreements can be hard, especially if you and your future spouse have different ideas about money.
These contracts, however, are in place to safeguard both you as an individual and you as a couple, helping to ensure that, in the worst-case scenario, everyone involved has complete peace of mind.
In the end, they aid in making clear each party’s financial rights and obligations during the marriage as well as the division of assets in the event of a divorce.
Prenuptial agreements can’t, of course, cover everything. For instance, the courts may decide to ignore any existing agreements if a prenuptial agreement is thought to be unfair to any children of the marriage.
Additionally, prenuptial agreements don’t cover anything that’s against the law or the constitution.
The Benefits of a Prenuptial Agreement
People frequently think that their marriage will continue forever when they choose to get married. While it’s encouraging to believe that this is the case for most married couples, some of them really ended up divorcing.
Divorce is probably the last thing on your mind as you arrange your wedding. You and your partner are optimistic about the future and are probably trying to avoid talking about the “what ifs.”
However, divorce is now an option, whether you want to admit it or not. The decisions that come with separation can be stressful for couples going through the divorce process. Even if your marriage can end in divorce, if you prepare ahead of time, there are ways to lessen the stress and the financial toll of divorce.
With a prenuptial agreement, you can
- There are listed items that would be tough to divide.
- You seek to safeguard inherited funds or large savings.
- You want to set out how and when an interest may be obtained in certain assets or property that were pre-owned
- You would like to safeguard the inheritance rights of any children from past partnerships.
- You want to maintain control over your finances.
- You operate a business and wish to maintain authority.
- You want to avoid being accountable for your spouse’s debts in the event of divorce.
- You want to establish the amount and length of spousal support/alimony in advance or specify a waiver of it and or set out what entitlement will be based on if substantial wealth
- You want to establish retirement account rights in advance and/or waive any such rights.
- You want to determine in advance how living expenses will be paid for or split.
- You have connections to another country or countries.
- You want to limit the cost of litigation and/or avoid it.
Prenuptial agreements are ultimately customised to each couple, their circumstances, and their requirements. You need to make some disclosures as to assets and income when entering into the agreement and you both need to have time to take legal advice.
There will always be the bare essentials, including a comprehensive inventory of assets with information regarding their disposition in the event of a divorce.
Detailed prenuptial agreements can also establish post-divorce financial arrangements for children, which is a highly scrutinised subject by the courts.
What happens if you divorce without a prenuptial agreement?
If a couple doesn’t have a prenuptial agreement, the starting point is to they usually split all their family assets and family property evenly.
Depending on the situation and the people involved, this may not feel fair to either of them. In this case, a prenuptial agreement may be necessary. There may be non-family assets that were in existence at the time of the relationship beginning but might become family assets, and it might be necessary to preserve or limit claims against these.
It’s crucial to think about using a prenuptial agreement to protect yourself. It can also help parties be clear about when and after how long and how they will acquire an interest in certain assets. This legal document outlines how your assets and debts will be split up in the event of a divorce. Additionally, it may help you and your spouse avoid protracted and costly court battles.
Getting legal advice from a family law firm in Ipswich
Nobody wants to think about getting divorced. A prenuptial agreement will, however, make your divorce less difficult if your marriage does end because the split of your assets and obligations has already been discussed and agreed upon by both of you.
Because of the nature of such an agreement and what must be included, it is critical to work with a family law specialist in Ipswich, such as Gillbanks Family Law. This is because a prenuptial agreement must be drafted by a qualified law firm, reviewed for fairness, and both parties must retain separate solicitors and lawyers to avoid any conflict of interest.
Prenuptial agreements have progressed from being just another form to fill out in order to keep what is yours while paying your spouse nothing or restricted amounts.
Instead, these agreements may be empowering. Working jointly and openly entering into an agreement, both parties are protected without any concerns or problems.
If you need further information relating to pre-or-post nuptial agreements from experienced and trustworthy family lawyers in Ipswich, contact us today at 01206 299 282 or email us your query at firstname.lastname@example.org
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