Nuptial agreements are made either before or during a marriage or civil partnership and set out how a couple’s assets and property would be split should they divorce or legally separate. 

Sally Ward, Senior Associate at our Chelmsford office, explains Nuptial Agreements in more detail and shares the reasons why married couples should consider getting one.

  • Clarity and Certainty. You can make it clear to one another that certain property belongs to you alone or that joint property is to be shared in a particular way. In divorce law, all property is considered so there is no guarantee that your sole property will not be shared in the settlement or that joint property will be shared as you wish.
  • Transparency. You should both provide financial disclosure of your assets and income in the nuptial agreement, so you will both know the value of each other’s assets, which will assist you in your negotiations for the nuptial agreement.  Discussing financial issues can be one of the most difficult aspects of marriage. Dealing with this at the outset and throughout the marriage can strengthen a relationship and support good communication.
  • May save money. There will be legal fees for preparing and advising on the terms of a nuptial agreement, but it is usually much less expensive to negotiate and draft a nuptial agreement whilst you are on good terms than to litigate about the division of your finances should you later separate or divorce and your relationship has become strained. Setting out how assets are to be divided on divorce in the nuptial agreement should lead to fewer arguments about finances should you later divorce.
  • Protection of assets. You can protect assets you may wish to “ringfence” from one another, such as inherited assets, family heirlooms, an interest in a business, gifts received from other people and family members, or property acquired before the marriage. If either of you has children from a previous relationship, a nuptial agreement can protect the financial interests of those children by ensuring certain assets are ringfenced for them. If either of you has a business interest, a nuptial agreement can prevent disruption to the business if the marriage breaks down.
  • Debt protection. If your partner has significant debts, either now or in the future, the nuptial agreement can be used to protect your assets from being used to settle those debts. (This will also be the case with any debts you may have now or in the future.)
  • Compensation for loss of career. You can agree that, if one of you gives up a potentially lucrative career to care for the family, that person should be entitled to a greater share of the assets to reflect their loss of earning power going forward. It is often difficult to convince the court to award an element of “compensation” for loss of career.
  • Provision on death. The pre-nuptial agreement can set out what should happen to your assets on your death. This can support the provision contained in your will and clarify what should happen to certain assets. For example, the inheritance prospects of children and grandchildren can be protected in the agreement.
  • Flexibility and freedom to agree your own terms. You may have a creative plan for dividing your assets if you divorce. A nuptial agreement provides you with the freedom to agree your own terms without the court imposing a solution on you. Nuptial agreements should be kept under review and adapted to suit your needs as the marriage progresses.

The timing of a pre-nuptial agreement is crucial, and early legal advice is always best at least 4 months before your marriage. If dealt with correctly, with full financial disclosure, regular reviews and independent legal advice, pre and post nuptial agreements will usually be the basis of any divorce settlement.

To arrange an appointment with a member of our Family Team, please contact us on 01206 764477. The team can offer advice at one of our offices in Colchester, Chelmsford,  Frinton-on-Sea, Ipswich or Bury St Edmunds.  We offer a free exploratory call so that we can match your specific needs with the right person in our family team.