Whilst none of us enter into a marriage expecting it to end, should we be doing more to protect our finances just in case? Keith Bull, Head of the Family & Divorce team at Bromleys, explores why you should consider a prenuptial agreement to protect your assets should your relationship break down.
Recent research has shown that there were 103,552 divorces between opposite-sex couples in 2020. With this in mind, there’s no wonder there has been an increase in interest in prenuptial agreements, also commonly referred to as ‘prenups’, prior to tying the knot.
Prenuptial agreements were recognised by British courts in 2009 and are becoming increasingly popular for those entering into a marriage or a civil partnership.
What is a prenuptial agreement?
A prenuptial agreement is a formal written contract that can be entered into to protect each party’s property and assets.
For those seeking to marry, prenuptials offer a form of legal protection and financial control, rather than relying on divorce proceedings alone to make decisions about the split of assets or finances.
As divorce rates are high in the UK, prenuptial agreements are often used to reduce risk. The Office for National Statistics reports that divorces in England and Wales are highest between the 4th and 8th anniversary of marriage and that 40% of marriages end in divorce by the 20th wedding anniversary.
Why should you have a prenuptial agreement?
There are many reasons you should consider a prenuptial agreement. Some of these reasons include:
- Financial clarity
- One of the primary benefits of a prenuptial agreement is that it provides financial clarity for both parties, clearly outlining the division of assets and debts so they know where they stand and can avoid conflict or misunderstandings in the future.
- Protection of assets
- If one partner has significant business interests, inheritance or assets, a prenuptial agreement ensures that they can be protected, and ownership will remain with the individual in the case of a divorce.
- Debt protection
- If one partner has significant debt, a prenuptial agreement protects the other person from being held responsible for it if the marriage or civil partnership breaks down.
- Simplifies divorce proceedings
- Divorce is already an emotionally stressful time for everyone involved, so having a clear plan in place means couples can avoid legal battles over assets, which are often time consuming and costly.
Discussing a prenuptial agreement with your partner helps foster an environment of open communication and transparency about both of your desires and expectations of what should happen to your finances should your relationship not work out.
Get expert advice.
If you are unsure whether to choose a prenuptial agreement and would like to discuss your circumstances, the team at Bromleys are here to help. Call us today on 0161 884 0902 or email bromleys@bromleys.co.uk. You can reach Keith directly by emailing kbull@bromleys.co.uk.