In this article, I explore what a pre-nuptial agreement is and why it matters when you are considering getting married or entering a civil partnership and the effect these have when you decide to separate and/or formally divorce.
What is a pre-nuptial agreement?
A pre-nuptial agreement is a document that is drawn up by a couple before they get married. The purpose of a pre-nuptial agreement is to provide clarity as to how the assets they own will be divided or retained if the relationship breaks down. It is often referred to as a ‘pre-nup’. The equivalent for civil partnerships is called a pre-registration agreement.
Your pre-nuptial agreement will last from when it is signed until the end of your marriage or civil partnership. At this point, it will be reviewed by the Court to determine how your assets and property is divided.
What should be included in a pre-nuptial agreement?
The agreement should contain the essential points about property and financial matters including entitlement, control of assets, protection against debts and liabilities, and safeguarding children’s inheritance or assets. Typically, a pre-nuptial agreement will include any or all of the following:
- Business interests
- Inherited money and/or property interests
- Individual income (including future earnings)
- Pensions and savings (including Premium Bonds)
- Property jointly or individually owned
- Stocks and shares
Your pre-nuptial agreement should record all of your assets and property and who owns or has rights over them. The agreement should set out what (if anything) is to happen to each asset if the relationship breaks down.
Because pre-nuptial agreements deal with assets and property, they cannot include other elements. There are rules about what can be included and what must be excluded.