Do I have to agree to a prenup?

If you've been given a prenuptial agreement, commonly known as a 'prenup,' it’s likely not unexpected since many couples now view it as a practical step.

However, you might be questioning whether you must accept all the terms outlined in the document, or how solid your negotiating stance is if you wish to suggest modifications to certain clauses.

What is a prenup?

A prenuptial agreement, commonly known as a 'prenup,' in the UK is a legal document created by a couple prior to their marriage. It specifies how their assets will be divided in the event of a divorce.

A standard prenuptial agreement typically addresses assets such as property, debts, and income, helping couples prevent any financial surprises should their relationship encounter difficulties in the future.

Prenuptial agreements are often established when one partner possesses, or is expected to obtain, significantly more assets than the other. This scenario is common among individuals with substantial inheritances, landowners, business proprietors, or couples who are marrying later in life or entering a second marriage.

Read more about what can and what cannot be included in a prenuptial agreement here.

Do I have to sign the prenup given to me?

The simple answer is no, you are not required to sign any prenuptial agreement. It is a voluntary contract, and you cannot be compelled to sign it against your will. Entering into marriage does not mean you must accept your partner's financial terms or their preferences regarding any future divorce or dissolution of a civil partnership.

Nevertheless, determining whether to enter into a prenuptial agreement can be a more complex decision. Here are some factors to keep in mind:

• Why did they ask? Gaining insight into your partner's motivations can be very beneficial. Do they possess substantial premarital assets? Are they safeguarding a family inheritance or a business, like a farm? Maintaining open communication between the two of you is essential in this situation.
• What does the prenuptial agreement really stipulate? It's important not to assume that you must accept all the terms, believing that your partner’s lawyer has drafted it in a neutral manner, making it entirely fair and reasonable. Remember, their primary focus will be on serving your partner's best interests (and possibly their family's as well).
• What worries do you have? Take the time to thoroughly examine the draft prenup with your own lawyer and express any preferences or concerns you might have. It should be equitable for both parties and cover aspects such as property division, gifts, debt, and inheritance. Prenuptial agreements are often extensive and detailed, and legal terminology can sometimes obscure understanding. If you encounter anything unclear, don't hesitate to ask your lawyer for clarification.
• Are you at ease with the terms? Feeling pressured to sign a prenup is a warning sign that shouldn't be overlooked. If you feel uneasy or neglected, it's important to voice your concerns to both your partner and your lawyer. A prenup should be a collaborative effort, where you and your lawyers work together to reach a fair agreement.

What deadlines are included with prenups?

It is essential that a prenup is signed at least 28 days prior to your wedding date. This is one of the crucial requirements to ensure that your prenup qualifies as a ‘qualifying nuptial agreement,’ which will hold up in court if needed. Keep this deadline in mind and allow ample time for important discussions with both your partner and lawyer. Also, remember that your lawyers require sufficient time to prepare the document accurately for you.

If you decide to proceed but find it challenging to agree on the terms of the prenup before the 28-day deadline, you have the option to sign a postnuptial agreement following your wedding.

Can I get a prenup after marriage?

Yes, this is referred to as a postnuptial agreement. It functions similarly to a prenuptial agreement, outlining the division of assets and other financial considerations between spouses in the event of a divorce.

A postnuptial agreement can be beneficial if your situation evolves after marriage. For instance, the arrival of children may motivate you to establish a formal agreement. Similar to prenuptial agreements, postnuptial contracts are not legally binding in the UK. Nevertheless, a professionally drafted agreement that adheres to the same criteria as prenups will be taken into consideration by the court should a separation occur.

How do I know if a prenup is a good deal for me?

Once you understand the contents of the draft prenup, you'll naturally question whether the suggested divorce terms are suitable for you. Keep in mind that a highly imbalanced agreement may be dismissed by the courts later on, so ensuring fairness is essential.

To determine if the deal is advantageous or disadvantageous, both parties must provide complete and transparent financial disclosure, which can be referenced when reviewing the prenup terms. This approach will help ensure that you have made well-informed decisions regarding what is fair and what is not.

Every prenuptial agreement is customized to fit the unique circumstances and requirements of a couple, so you should consider aspects such as:

• what the income and capital levels you may require at various stages in the future.
• whether you currently have children or plan to have them after marriage, and ensure their financial needs are addressed.
• if the terms align with your overall reasonable requirements.

No matter the current financial situation, the courts will uphold the law to ensure that both parties' housing needs are addressed, preventing anyone from being left without support. Throughout a marriage, various events can impact your financial requirements, so it's essential to include review clauses in the draft prenup. This will allow for necessary updates and changes to be made as needed.

Is a prenup legally binding in the UK?

While a prenuptial agreement outlines the parties' intentions regarding divorce, these agreements are not legally binding. Consequently, the court maintains the final authority to decide how assets will be distributed in the event of a divorce.

The court must consider the existence and details of a prenuptial agreement when evaluating financial remedy proceedings.

The significance and impact of a prenuptial agreement are contingent upon the specific circumstances of each case, as well as the conditions that existed when the prenup was established.

This protection is crucial, as there may be instances where a prenuptial agreement is signed without one party fully understanding its implications or intentions.

The court would take this into consideration when determining the extent to which it can depend on the terms of the prenuptial agreement.

Things to consider

Before entering into a prenuptial agreement, keep the following considerations in mind:

• Ensure complete financial transparency from both parties.
• Allocate ample time for discussions and document preparation.
• Seek independent legal advice from a family law expert and address any concerns.
• Verify that review clauses are included in your prenup.
• Keep in mind that the terms should be equitable for both of you.

Ultimately, deciding whether to sign a prenup is a personal choice. By exploring your options and maintaining open communication with your partner, you can make a well-informed decision that aligns with your shared future.

How can Hegarty help?

Regardless of whether you’ve just set your wedding date, or your partner has presented you with a draft document for your signature, we can offer you expert guidance to ensure that your prenup guarantees a fair arrangement for you, in the event that your marriage breaks down in the future.