Behind the Wedding Bells – The Growing Number and Significance of Pre-Nups

There has been significant social media coverage of Taylor Swift and Travis Kelce’s recent engagement, and the potentially huge financial implications behind the power couple.  According to Forbes, their combined net worth is estimated at over £1.67 billion, but with circa £1.6 billion of that belonging to Taylor.

Whilst that is an eye watering amount and not even remotely relatable to the vast majority of us, the speculation about whether to enter a pre-nuptial agreement (“pre-nup”) is a very real consideration for so many couples nowadays.  With the cost of housing often being out of reach for young couples by themselves, it is fairly common for at least one set of parents to advance monies for a deposit, for which they would like there to be some level of protection in the event the marriage ends.   Similarly, for those entering a second marriage there is often a desire to safeguard wealth for their children from their first marriage.

What then is a pre-nup, what does it do, what are the advantages, and are they legally binding here in England?

What are pre-nups?

Pre-nups are contracts made between a couple before they marry or enter a civil partnership and set out the financial consequences of a future divorce or dissolution should their relationship ever breakdown.

Why do I need one?

A pre-nup will make a difference to how financial assets are divided between you and your spouse or civil partner upon divorce or dissolution.  You may want to enter into one if, for example;, you are marrying or entering a civil partnership later in life and have already accumulated wealth, you have received or are about to receive an inheritance, or have children from a previous relationship who you want to ensure will also be protected.

The family home is deemed a matrimonial asset and in the absence of a pre or post-nup the starting point is often for the equity in the property to be shared equally

What are the advantages?

Pre-nups can help provide clarity and transparency and avoid the uncertainty, acrimony and costs that can arise during divorce or dissolution proceedings.

You can enter into a post-nuptial agreement which is dealt with in the same was as a pre-nup.  As with a pre-nup you will need your partner’s agreement.

Are they legally binding?

While pre and post-nups are not legally binding in England and Wales, the court will uphold a pre or post-nup that is fair and freely entered into with a full appreciation of the implications.

What should I do if I want to make a pre or post-nup?

You should take legal advice at an early stage as it is crucial that certain principles are met.  If these are not followed the court may not uphold the agreement.

Thinking about a pre-nup or post-nup? Our experienced family law team can guide you through every step, ensuring your agreement is fair, robust and tailored to your circumstances.