The Christmas and New Year period is one of the most popular times for couples to get engaged. While planning a wedding is an exciting chapter, it is also an important moment to consider practical matters, including how finances would be dealt with if the relationship were to unfortunately ever break down.

Prenuptial agreements are increasingly being used by couples in England and Wales who want clarity and certainty from the outset of their marriage.

What is a prenuptial agreement?

A prenuptial agreement (or “pre-nup”) is a formal written agreement entered into before marriage. It sets out what each party owns and how assets, income and property would be divided if the marriage were to end. Similar agreements can also be entered into during marriage, known as postnuptial agreements.

Are pre-nups legally binding?

While prenuptial agreements are not strictly legally binding in England and Wales, the courts will give them significant weight provided they are properly prepared. This includes both parties entering into the agreement freely, with full financial disclosure, independent legal advice, and sufficient time before the wedding. The court’s overriding concern will always be fairness, particularly where children are involved.

Not just for the wealthy

There is a common misconception that prenuptial agreements are only for the very rich and famous. In reality, we see that many younger couples are now choosing to put agreements in place. Pre-nups are also becoming more common now in second marriages too.

Many couples are entering into pre-nups for a number of reasons including; protect inherited assets, protect family or personal contributions to property purchases, protect business interests, or simply to provide reassurance and avoid uncertainty in the future.

Pre-nups can be particularly helpful where:

• One or both parties have children from previous relationships • There are inherited assets or family wealth to protect • One party owns a business • There are assets that would be difficult to divide • One party has significant debts

A sensible conversation, not a pessimistic one

Discussing a prenuptial agreement does not mean planning for failure. Instead, it can encourage sensible open and honest conversations about finances and expectations, providing peace of mind for both parties as they begin married life.

With so many couples celebrating engagements at this time of year, now can be an ideal opportunity to take advice and ensure the right protections are in place well ahead of the big day.

If you would like any advice in relation to prenuptial agreements or any other aspect of family law our specialist Family law team at Berry Smith are able to help and ensure that any

agreement is fair, robust and tailored to your circumstances. Please do not hesitate to get in contact via family@berrysmith.com or 01656 645525.