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I do, I do, I do... with a prenuptial agreement in place!

Posted by Danielle Harvey on 24 February 2021

couple in wedding clothes kissing and confetti being thrown Not just reserved for celebrities and millionaires, prenuptial agreements are becoming increasingly popular with modern couples too, no matter their financial status. With the uncertainty 2020 has brought to the economic and employment market, it can only be seen as a positive step to raise awareness of the importance of prenuptial agreements and eliminate the stigma surrounding them. Millennials, in particular, need to be made aware of the significance of prenups, as they aren't necessarily something to be viewed negatively or avoided, it's simply a sensible way to protect yourself and your finances. 
The experts at JMW Solicitors have put together an in-depth guide to prenuptial agreements:

couple signing document at a table What Is A Prenuptial Agreement?
A prenuptial agreement is a document signed by a couple before they get married to determine what will happen to their property, assets and income in the event that their marriage ends.

A similar agreement can also be made before a civil partnership ceremony, referred to as a pre-partnership agreement. The relevant legal issues are the same.

You can also make an agreement with your spouse or partner after entering a marriage or civil partnership, or revise the terms of your prenup in response to a change of circumstances or periodic review. An agreement of this type is called a postnuptial agreement, and works in much the same way as a prenup.

The overriding purpose of all these agreements is to provide clarity on how assets and income will be distributed in the event of a divorce or dissolution.

couple on sofa looking at document What Can Be Covered By A Prenuptial Agreement?
The contents of the agreement will be dictated by the parties' financial position and their objectives. Agreements may include:

  • A plan for how the financially weaker party's need for housing and income will be met, whether by way of a transfer of property, a lump sum, periodical payments or a combination of all three.
  • A definition of what can be considered as "matrimonial" property to be shared, and "non-matrimonial" property that will be ring-fenced in the event of divorce. This could include pre-existing business assets or an interest under a trust.
  • How future property will be held and divided on divorce.
  • The treatment of inheritances and gifts received during the marriage.
  • A mechanism to divide personal possessions and provisions for individually valuable items or collections.
To continue reading this comprehensive guide to prenuptial agreements courtesy of JMW Solicitors head over to its website here.

 
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