Pre-nuptial agreements have attracted media attention again recently, with reports that Brooklyn Beckham and Nicola Peltz have signed a pre-nuptial agreement.
It is important to note that pre-nuptial agreements are not legally binding in England. However, provided that various criteria are met, and the terms of the agreement remain fair, the English Court is likely to attach significant weight to the terms of a pre-nuptial agreement in a later divorce.
There are many advantages to entering into a pre-nuptial agreement. These include the following:
- Autonomy: providing individuals with autonomy at the time of entering into a pre-nuptial agreement should allow for certainty and reassurance that the parties’ wishes and intentions at the time of entering into the agreement are likely to be respected in the event of a future divorce.
- Financial reassurance: a pre-nuptial agreement can be used as a means to ‘ring-fence’ assets in the event of a future divorce. This advantage may be of particular benefit where the parties to the pre-nuptial agreement are wealthy individuals. However, pre-nuptial agreements are not just for the wealthy. A pre-nuptial agreement may also be sensible when one party; is expecting to inherit during the course of the marriage, may be financially more secure than the other at the time or the marriage, and / or where one or both parties has children and seek to ring-fence assets for the benefit of their children in the event of a future divorce.
- Clarity: both parties to a pre-nuptial agreement will need to disclose their respective financial positions prior to entering into the agreement. This is to ensure that the parties will enter the marriage with a clear understanding of the other’s assets and income.
If you are considering entering into a pre-nuptial agreement, or wish to discuss the benefits further, please contact Olive McCarthy (olive.mccarthy@taylorwalton.co.uk) or Emily Woodhouse (emily.woodhouse@taylorwalton.co.uk) on 01582 765111.