People who marry later in life – particularly those who have been divorced previously – are more likely to consider a prenuptial agreement. David Connor discusses the main considerations
Why prenups are practical and sensible arrangements
Prenuptial agreements have sometimes been portrayed as an unromantic contract that casts doubt on a marriage before it has even begun.
Of course prenups are not for everyone, but we firmly believe they are often a practical and sensible arrangement – similar to making a Will, insuring your home, or taking out a life insurance policy.
The value of prenups for older people
Pre-nups are especially important for older people who have already been through the trauma of divorce proceedings and know how emotionally and financially damaging this can be.
Experience has taught them to be realistic about the possibility of relationships breaking down and the need to protect their assets, such as pensions and the family home.
Just as importantly, children from an earlier marriage may well be concerned about how a potential further divorce might affect their interest in their parent’s estate.
What you need to know about the legal status of prenups
Although not totally binding, the Supreme Court has said that a prenup agreement, freely entered into by both parties, with a full understanding of its implications, will be upheld unless it would be demonstrably unfair.
Provided these awareness and fairness conditions are met, a divorcing couple can expect the terms of the prenup to be implemented. This means a professionally drawn-up agreement is almost as good as binding.
How prenups can make a marriage stronger
Many older people find peace of mind in the clarity a prenup provides. By defining the assets belonging to each individual, a prenup creates certainty from the outset regarding how possessions and finances will be dealt with if the marriage breaks down.
In this sense, a prenup can bring stability and openness to a marriage that is not always the case when couples avoid difficult or sensitive issues for fear of upsetting one another.
Another advantage that people are often not aware of is that a prenup can ultimately save money because it will usually be cheaper to implement an agreement than engage in litigation when the wheels have already come off a marriage.
Tailoring a solution to suit individual circumstances
Many people with shares in a family business value the protection a prenup gives them. A business may be severely damaged if the other party is awarded shares, with the potential to interfere in operational activities. The prenup prevents this and ensures there will be no disruption to the profitable running of the business.
By opting for a prenup you can also ring fence major assets, such as property acquired before the marriage, inherited assets and family heirlooms. A court is much less likely to award a share of a protected asset to the other party in any division of possessions.
In addition, a prenup allows couples the freedom to set their own terms. Many prefer to create a solution of their own than face the uncertainty of a court imposing a one.
The need to take expert advice to get the right outcome
Many difficult, sensitive and technically challenging issues must be addressed in a prenup if it is to pass the fairness test applied by UK courts, so it is essential that legal advice is obtained from an experienced solicitor.
For further advice on prenuptial agreements, call David Connor on 01706 225621, or email him at david.connor@whnsolicitors.co.uk
