We did a Facebook campaign recently which just said “Prenuptial agreements – why risk your assets?”.
While quite a lot of people “Liked” the post, there were also a few negative comments as in, “Marriage is about sharing and you are just being cynical/miserable/defeatist” . Fair enough, everybody is entitled to their opinion and Facebook is…well, Facebook.
But with 42% (Forty Two!!) of marriages ending in divorce surely it is not cynical to ask yourself the question, “Do I need a prenuptial agreement (prenup)?” 9% of people divorcing have been divorced before. That’s a fair few people have been in a divorce (with all the messy WTF?? factor that involves) and they still get married again probably without protecting themselves in any way. AMAZING.
For a long time prenups were considered to be contrary to public policy ( bad for morals on the grounds they might encourage divorce) but in the light of the statistics that worry has long fallen by the wayside. Most other countries have a premarriage agreement system of one sort or another (In Austria you cannot marry without a prenup) and the UK is seriously considering the issue as the Law Commision finally reported on it here.
So here is a little FAQ to consider if you are wondering whether a prenup could help you…
- Is a prenup going to hold water? – current legality of prenups is based on recent case law. They are a significant fact the court should take into account when deciding how to split up the assets.
- So it is rock solid right? – a prenup is a contract and a well written contract is enforceable.
- Brilliant. I’ll take one immediately, the wedding is next week. – Errr. No. That would be putting your other half under intolerable pressure to sign it. You need at least 28 days before the wedding and you better start planning it at least 3-6 months before.
- Just kidding, the wedding is next year, so I want a prenup but can you just knock one out between elevenses and lunchtime for me? – no, you need to put your cards on the table about what assets you have , in writing, with back up paperwork (bank statements, house valuations etc.) so it is not an instant process.
- I am 26, my fiancé is 30, we have no serious assets and no children, do I need a prenup? – Generally the most likely candidate is going to be a couple who have chunky assets. For example, a house, a company or a lump sum from an inheritance. So a young couple could have a prenup, but they may decide it is unnecessary.
- I want my prenup to completely stuff my spouse in the event of a divorce. I am never paying spousal maintenance again and I want to keep the house and the pension. – Actually marriage is about sharing and joint endeavour, so no sensible lawyer would draft a prenup that was unfair to the other party – it would just get knocked over by the court.
- What’s the point then? – well it provides certainty, and protection from either of you being unreasonable.
- They cost a bomb, it is only for millionaires. – not really. Divorces can cost a bomb though, mostly because people go completely bonkers due to the emotional maelstrom that a divorce plunges them into. Family First offer an affordable fixed fee for prenups.
