When getting married, some couples may want to arrange and establish the rights and responsibilities of each part of the couple in the event of divorce.
Known as a prenuptial agreement, the concept has become increasingly popular in the United States as a way to reduce the stress that can be caused by divorce. However, they are far less common in the UK at present due to the differences in the marriage and divorce process.
In the UK, prenuptial agreements are not automatically enforced and are treated on a case-by-case basis.
The landmark case that established this was the divorce case of Radmacher v Granatino. The couple, an heiress and a banker respectively, signed a prenuptial agreement which featured the provision that neither party would claim against the other, and that the pair’s assets would remain separate.
Following a two-year legal case and two appeals, the Supreme Court ruled that prenuptial agreements should be given “due weight” in divorce proceedings, as long as they were freely entered into, as long as it would be fair to do so.
Whilst the vagueness of the ruling means that it has not been fully established what it means by an agreement “freely entered into” nor what “a full appreciation of its implications” explicitly means, nor the circumstances where it would not be considered fair to hold both parties to the agreement.
Typical factors that are part of any prenuptial agreement include disclosure of financial status, both parties seeking independent legal advice, no pressure when signing the agreement, fair and reasonable terms that proportionately help both parties and when the agreement was signed.
It is similar in concept to a will or a contract in those regards, even if the specifics will vary depending on the legal precedent that is cited.
In any event, a prenuptial agreement needs to be drafted by an experienced solicitor who will ensure that it has as little scope for legal challenge as possible.