Are you recently engaged? Planning a wedding requires a great deal of preparation. While you may be focused on organising the big day, it’s also important to consider your financial future as you make plans with your loved one.
For some couples, taking out a prenuptial agreement can be an important step in the pre-marriage process. Should you be thinking of taking out a prenup, here’s a look at what this is and some of the reasons why it could be useful to you.
What is a prenup?
A prenuptial agreement is often referred to as a prenup and it’s an agreement made between a couple ahead of their wedding day or before they enter a civil partnership. This details how they want to divide their assets should they decide to divorce or end their partnership.
This type of wealth protection is increasingly becoming something that couples are thinking about. A 2023 YouGov poll revealed that Britons (42%) are most likely to see a pre nuptial agreement as a good idea.
Should the agreement meet the qualifying criteria set by the Supreme Court, it’s presumed that the prenup will be upheld by the family court. However, it’s important to note that these agreements are not automatically enforceable in courts in Wales and England, and if you speak to a family law solicitor, they will advise you about this before you begin the prenup process.
Some of the advantages of this type of wealth management include:
1. Protect your financial assets
Your prenuptial agreement sets out how you divide your financial assets, including properties, investments, businesses, and any savings you both have. It also includes any assets acquired before or during your marriage.
By agreeing how everything will be shared out should you separate, you’ll find that your assets are protected, and you’ll know exactly what you’ll take away at the end of the marriage.
Plus, you’re protecting your future investments in situations that might change. For example, you know that your property is yours, whether prices rise or not.
2. Speeds up the divorce process
Divorce can be a lengthy process and one of the major holdups is disagreements about who gets what after. A prenup clearly sets out where the assets will go, so there’s transparency and also a clear path for your divorce lawyer to take.
Even if your marriage ends amicably, it’s likely that you’ll want to legally finalise everything as quickly as possible so that you can both move forward. Having this agreement in place can help with that.
3. Saves money
As well as saving time, you can save money. Divorce can be costly, but if you can speed up the process by not needing to work out who’s entitled to certain assets, you won’t require legal services as much as you might if you were to have to figure this out during the divorce process.
