There’s no doubt that prenuptial agreements are a worthwhile investment. While they’re not legally binding in England and Wales, they can be highly persuasive when it comes to dividing any assets in the event of a divorce.
Some people struggle with the concept of prenuptial agreements, seeing them as ‘unromantic’ and promoting a pessimistic view even before a marriage has begun. In reality, they offer an added level of security and protection, albeit one that you’ll hopefully never have to use.
Prenuptial agreements should always offer a true reflection of your current circumstances as a couple. To ensure that this remains the case, it’s sensible to review your prenuptial agreement once every five years or so, to make sure everything is up to date and still fit for purpose.
Below, we’re exploring just a few of the circumstances when your prenup might be due for review.
Your finances as a couple have changed
Many couples decide to draw up a prenuptial agreement as a way of protecting their finances. You might want to protect family inheritance, assets from before the marriage or returns from a family business, for example.
If your situation changes, for example, if you acquire more assets as a couple (properties, an inheritance, or valuable items such as art or cars, for instance), it’s sensible to review these and the impact they have, so that you can make decisions about how these will be divided if your relationship comes to an end.
Disability or illness
If you or your spouse experiences a disability, illness or health issue, reviewing your current prenup is a wise move. These things can significantly impact daily life and bring a new financial reality. It’s essential to make sure that the provisions in your current prenup are fair for all concerned.
The arrival of children
Just as you should update your Will when you have children, it’s a good idea to review your pre-nup as your family grows.
Again, hopefully you won’t ever need it, but this is a chance to consider your wishes for any child arrangement orders or financial support if you and your spouse break up.
Significant career changes
If one or both of you have had a significant career change, which means you’re earning a lot more (or a lot less), you might want to review your pre-nup and make sure the distribution of wealth and assets is reflective of your situation.
The same is true if one or both of you have to give up work for caring responsibilities or to raise children, as this will dramatically impact your initial financial agreements in the pre-nup.
Have you considered a cohabitation agreement?
If you’re unmarried, but would still like to add a level of security to your relationship, there are actions you can take. Entering into a cohabitation agreement when you buy a house together can avoid conflict when deciding ‘who gets what’ when it comes to your assets if anything happens to the relationship.
At Harrogate Family Law, we’re here to help you make the right choices for you. If you’d like to speak to us about prenuptial or postnuptial agreements or your options as an unmarried couple, contact us now.
