The Benefits and Drawbacks of Prenups – A Quick Guide

The Benefits and Drawbacks of Prenups – A Quick Guide

If you’re engaged, you might be planning your nuptials right now. But beyond the wedding day, you might also want to consider making some plans for the future. For some, taking out a prenup can be an important condition before marriage. Could this be something that suits your situation? In this article, we’ll explore the benefits and drawbacks of prenups to help you make your decision.

What is a prenuptial agreement?

A prenuptial – or prenup – is an agreement that couples make before they get married or enter a civil partnership. It formalises how their assets should be divided if they separate in the future. 

It may be considered pessimistic, but prenups are becoming an increasingly common consideration for many couples. A 2023 YouGov poll found that 42% of Britons are likely to see a pre-nuptial agreement as a good idea. 

If you’re thinking of pursuing a prenup, it’s important to speak to a family law solicitor who can provide expert advice. They’ll draft and review it, ensure it is fair and legally sound, and will tailor it to your specific circumstances.

 It’s also worth thinking about the pros and cons of this type of agreement. 

The benefits of prenups

Advantages of a prenup include:

1. Asset protection

Assets such as any properties, businesses, and any savings you both have are all secure if you do decide to separate. Importantly, this applies to assets you acquired before or during your marriage, such as inheritance. 

2. Makes the divorce process fair

Having a clear-cut idea of who is entitled to important assets from the outset ensures that the process is fair. Both parties know exactly what they’ll walk away with from the marriage and it reduces the likelihood of an imbalance.

3. Speeds up the process

It also saves time. Divorce can be a long process, but if you’ve both already agreed on how your assets will be divided, this can make for a smoother settlement.

The drawbacks of prenups

Drawbacks of a prenup include:

1. Prenups aren’t legally binding

There’s always the chance the prenup won’t be upheld in court. This is because these agreements aren’t automatically enforceable in courts in Wales and England. However, there was a landmark ruling in 2010, that means they are more likely to be maintained by the family court, as long as it meets the qualifying criteria set by the Supreme Court. This criteria is:

• The prenup must be entered into willingly by both parties, who should both have received legal advice and should both have received full disclosure.
• Both parties will need to sign the prenup.
•  It must not have been signed within 28 days immediately before the marriage or civil partnership.

2. Prenups can cause tension

Away from the legalities, the concept of a prenup can be a contentious issue. If you’re not both fully on board with the idea of taking out this type of agreement, it can potentially cause tension. This makes sense as the idea is accounting for the worst case scenario where the marriage or partnership ends.

3. It can be overwhelming

Trying to decide who gets what in the event of a separation can also be stressful. Deciding how you want to share out your assets can mean considering a future that you’re unable to picture right now. A skilled solicitor will provide support and advice, but it’s important that you both think carefully before you proceed. 

Guest Article.