Prenuptial Agreement (or ‘prenup’)
Assets including property, debts and income are usually covered in a typical prenuptial agreement to help couples avoid financial surprises if the relationship were to break down.
Prenuptial agreements are normally put in place when one party already has, or is likely to acquire, more assets than the other. For example, those with a large inheritance, landowners, business owners, couples marrying in later life, or who may be entering into a second marriage.
The purpose of a prenuptial agreement is to provide clarity for couples regarding how their assets would be divided in the event of a relationship breakdown. Typical prenuptial agreements cover:
- Protecting children’s inheritance or specific assets
- Protecting inherited money, assets or savings
- Allowing one partner to retain full control of business ownership
- Giving you both a say in how assets will be split if you decide to divorce
- Protecting you from your partner’s debt
What should be included in a prenuptial agreement?
A prenuptial agreement will contain an inventory of assets and how you both wish for them to be looked after during your marriage, and how they would be split in the event of a relationship breakdown. If there are assets you would not want to be divided or split if you were to divorce, these should also be included in your prenuptial agreement.
Clauses usually include:
- Property held in your sole or joint names
- Savings and premium bonds
- Stocks and shares
- Business interests
- Pensions
- Income
- Inheritance
When signing your prenuptial agreement, you will decide whether one partner keeps the assets, or if you split them (and what portion each of your will receive). A prenuptial agreement could prevent your partner from automatically receiving a share of your assets in a divorce settlement.
FAQs
Please see below for our most frequently asked question. If you have any more questions, please feel free to contact us.
