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A prenuptial agreement (prenup) is an agreement set up by a couple prior to marriage, the prenup will detail how finances work whilst married and in the event that the marriage breaks down.
A post nuptial agreement is often set up by couples after the breakdown in a marriage that once again details the financial arrangements and is entered into by both parties.
Lots of couples believe that their marriage will last forever but the facts are, over one in three marriages do end in divorce, it is sensible that provision is made in advance. People that have been married before and understand what it is like to go through divorce, are more likely to set up a prenuptial agreement, I am sure this is because they know the cost and problems that can arise.
Whilst the cost of a prenuptial agreement may be viewed as unnecessary and an 'insurance' that may not be needed, the cost of one can be significantly less than a long protracted divorce.
Why should I arrange a prenuptial agreement?
It important to know it is a voluntary agreement, and should be entered into once discussed thoroughly by all concerned.
There are a number of reasons that many people consider any of which may be applicable to your own situation.
The main consideration is that parties in the relationship have assets that would be difficult to divide, or you have property that can be shared and you wish to set out in advance how that division works.
As mentioned individuals that have been married before are more likely to take out a pre nuptial agreement, a common reason for this is fairness and they would like to set this out in advance.
You may be in the situation where you may inherit money or assets from the family and you wish to protect this for the future or your children.
You may wish to detail financial protection for your children; the vast substance of the prenuptial agreement will be financial.
Divorce in the UK quite often works on the 50/50 rule, if one person is bringing assets to the relationship earned years in advance they may wish to protect that asset.
It is important to be aware that when you arrange an agreement both parties will receive independent legal advice, and will be fully aware of their rights.
You will find that there are plenty of websites offering advice, we would recommend that you contact a family law solicitor in your area that can help, yes you can download templates, but we believe that you should have an agreement designed to suit your circumstances.
The CAB will provide guidance and can be very useful, most solicitors will provide a free, no obligation interview to discuss the process, and we would recommend that you ask for a fixed price for construction of the agreement.
Prenuptial agreements are legal in the UK and recognised by the court, providing it meets certain criteria - the main one is that the agreement is fair and include full disclosure by all.
To ensure your prenuptial agreement is valid we recommend you;
- Use different solicitors, each party involved must receive independent legal advice from the other
- You must both agree to the pre nup in its entirety, and enter into it voluntarily.
- Your agreement must be signed at least 21 days prior to your marriage.
- All parties must fully disclose all assets.
- Your pre-nuptial agreement is drawn up and agreed by qualified solicitors.
If your agreement is judged to be unfair it may be dismissed in full by a family court.
There may be many other questions you may have that are pertinent to your situation, and we recommend you discuss this with your solicitor, but consider;
- How does your Will affect an agreement
- Any international assets
- What if your situation changes and therefore your future requirements change
- What happens about potential liabilities
If you would like to contact a family law solicitor in your area, please use the search provided at the top of this page, we recommend that you contact a number of solicitors when making your choice, and if you do want a pre-nuptial agreement, don't leave it too late!
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