Many couples are confused or wary about pre and post-nup agreements. Although they are gaining in popularity and are now quite commonplace, some still reject the idea outright because they view them as being unromantic.
Surjit Verdi, a Partner with Palmers who heads the family law team, says it’s important to separate fact from fiction when considering a pre or post-nup agreement.
With this in mind she has put together the top five misconceptions:
- Pre and post-nups are only for the super-rich and celebrity couples
Not true – although the newspaper headlines and celebrity gossip magazines would have you believe this is the case, pre and post-nups can be very helpful to couples who need to ensure their finances are protected. For example, someone who has been married before and has children from a previous relationship may wish to keep their assets separate for inheritance purposes.
There may also be family heirlooms or property that has been passed down through the generations, which may need to be protected.
- UK law does not recognise pre and post-nup agreements
Mostly untrue – Although pre and post-nups have no ‘statutory authority’ in England and Wales – meaning they have not been formerly written into law, there is every likelihood that a divorce judge will uphold either a pre or post nup providing that the agreement has been drawn up properly and it has been freely entered into by each party.
- Pre and post nups are one-sided
Not true – One of the most common myths about a pre and post nup is that they are put in place to ring-fence the assets of the richer partner from the gold-digging intentions of their poorer other half.
Pre and post nups should be looked upon as a chance to have an open conversation about each other’s finances so that each goes into the marriage knowing about the other’s finances. If the worst should happen and the marriage ends, a conversation has already taken place about how the assets will be split – it’s certainly not about one party keeping or taking everything. A pre or post nup removes the risk of any nasty financial shocks further down the line.
- If necessary you can sign a pre-nup the night before the wedding
Technically true but not ideal – Pre-nups normally need to be signed at least 28 days before the marriage takes place. The reason is that, if the marriage should end in divorce, there is far less likelihood that one party could suggest they were placed under duress to sign the pre-nup at the last minute without considering their options.
If a pre-nup has been under discussion for months but is signed at the eleventh hour, it is helpful to include a written explanation of this to avoid confusion or misunderstanding at a later date.
- If you are already married it’s too late to draw up a nuptial agreement
Yes and No – As the name suggests a ‘pre-nup’ can only be drawn up before the wedding has taken place, but a post-nup is equally effective. It can be put in place at any time during the marriage. This means it can be particularly helpful where there has been a change in personal or financial circumstances. A post nup can be put in place as a completely new agreement or can be used to cancel out an outdated pre nup, just as you would update a Will.
If you would like more information about pre and post nups, please contact our family law team, who will be happy to provide help and advice.