Tayo Taylor
Partner

With statistics showing that around half of all marriages end in divorce, it can make sound financial sense to establish a pre-nuptial or post-nuptial agreement in order to regulate the division of assets in the event of a dissolution or divorce.

What is a pre-nuptial agreement?

A pre-nuptial agreement, or prenup, as it’s also known, is an agreement drawn up prior to a marriage or a civil union. It clearly outlines how a  couple’s assets will be divided up if and when their marriage or civil partnership ends. They’re not just for the rich and famous; if you have property or investments which were individually acquired before the relationship then you may wish to protect them with a prenup.

Pre-nuptial agreements are not inherently legally binding in the UK; in the eyes of the law, when you enter into a marriage or civil partnership, all of your assets become shared and are subject to being divided equally upon divorce.

However, pre-nuptial agreements are increasingly being enforced in court where a number of conditions are met such as both parties having received legal advice, both parties having provided material financial disclosure, no evidence of duress and the agreement meeting the needs of both parties and any children.

If you want the courts to take your prenup into account in the event of a divorce or dissolution of a civil partnership then it’s something that you should carefully consider, and have drawn up several months before your wedding or civil union.

What is a Post-Nuptial Agreement?

A post-nuptial Agreement (or postnup) is an agreement drawn up after a marriage or civil union.  This will apply where the couple did not have a pre-nuptial agreement drawn up before their marriage or civil union.

It may be the case that a couple have not felt able to allocate the time to having a pre-nuptial agreement drawn up and arrangements for the marriage or civil partnership has taken priority.

However, a post-nuptial Agreement can be drawn up instead to set out how they would like their assets distributed in the event of the relationship breaking down.

Post-nuptial agreements are not inherently legally binding in the UK. However, post-nuptial agreements are increasingly being enforced in court where a number of conditions are met such as both parties having received legal advice, both parties having provided material financial disclosure, no evidence of duress and the agreement meeting the needs of both parties and any children.