Prenuptial Agreements

Prenuptial Agreements: otherwise known as “prenups”, marriage-contracts, or co-habitation agreements. If made after the marriage, they are called “postnups”. Who has them? Why have one? Does this apply to me? How do I go about obtaining one? What if my partner does not agree? Where …….. ? The questions are numerous, but I will endeavour to answer the most common and frequently asked.

In American prenups were introduced around the 19th century before the 1848 “Married Woman’s Property Act”. In Europe, particularly amongst the Royal Houses, they have been around much longer to protect the crowns heritage (land, crown jewels, etc) and future heirs to the throne and their religious upbringing. For women who brought with them a substantial dowry (or inheritance) to the marriage it was necessary to protect themselves, particularly from husbands looking for a marriage of convenience.

Who Has Prenuptial Agreements?

Undoubtedly, like any other royal couple, Prince Frederick and Princess Mary will have an agreement in place. It will concentrate on maintaining the crown’s assets, the upbringing of any offspring (including their religion, nationality and place of residence), in the event of a divorce the provision to be made for Princess Mary (residence, income, access to any offspring, returning of any family heirlooms e.g. jewels, confidentiality agreement/signing an official secrets document).

Donald Trump is a firm supporter and has stated he would not be where he is today without having had prenups in place. However, it is not just the rich and famous that should think about pre-marriage contracts. Anyone who has worked hard, scrimped and saved, to build their own nest-egg, (e.g. home, stock, retirement fund), should think seriously about protecting it.

Why Have Prenuptial Agreements?

- if one has considerably more assets than their partner
- if one owns, or part owns, their own business
- if one has intellectual property e.g. a writer, an inventor
- to protect against possible future earnings, e.g. if a budding sports-star, or pop-star
- if one is supporting the other through college
- if one has given up their career for the other
- if one has children and/or grandchildren from a previous marriage
- if one has special circumstances, e.g. looking after a disabled child, or elderly parents who need taking care of
- if one wishes to keep pre-marital assets separate
- if one, as the less wealthy partner, has become accustomed to a much higher standard of living to ensure spousal maintenance
- to ensure simplicity should the marriage dissolve
- to ensure family heirlooms remain within the family
- to ensure that one does not inherit the others debt
- to ensure a divorce will not be refused on religious grounds
- to determine, in interfaith marriages, under which religion any offspring will be raised

Who Should Think About Prenuptial Agreements?

If any of the above reasons ring any bells with you, then you should certainly give this some thought. After all, look at the statistics – 1 in 3 first marriages end in divorce and 1 in 2 second plus marriages end in divorce. So, should you wish for your assets to be divided differently than they would in a court of law following a divorce, act now!

How Do I Go About Obtaining One?

Do your research on the web site and you will even find prenup kits available. Contact your family solicitor as you should also be updating your will. Both partners should seek independent legal advice to ensure it is fair to both. Any illegal clauses will make the prenup subject to judicial scrutiny and it may be disregarded. There must be no coercion.

What If My Partner Does Not Agree To One?

Your pending marriage is not only an emotional and physical union, but also a financial union. Arguments about a prenup showing lack of trust of one partner in another, about it causing resentment and being unromantic are invalid. It is expedient to discuss financial expectations and gain a greater understanding of external elements that are of importance to each other. This should promote greater communication and even happiness.

However, the bottom line is that in the event a marriage is dissolved it is a cost-effect exercise that can make an unpleasant event run smoothly. I cannot think of a valid reason why not to have prenuptial agreements in place. Just let’s hope you do not have to evoke it.