Pre-Nuptial Agreements
Planning for a divorce before you get married is, for many, unthinkable. Lionel Ritchie, however, was far from ‘Dancing on the Ceiling’ when he discovered his ‘Endless Love’ costs a fortune – reportedly, US$300,000 a month. From Paul and Heather to Scary Spice and Jimmy Gulzar, the way that couples view their finances have been influenced by these high profile break-ups. You don’t have to be Michael Douglas and Catherine Zeta Jones to realise the benefits of signing a Pre-Nuptial Agreement. Research suggests that 47% of British women and 44% of men would like to safeguard their property should their marriage end, and with two in every five marriages breaking down, it is wise to consider taking precautions.
A Pre-Nuptial Agreement is a legal document entered into by a couple setting out how they want to deal with their finances if the marriage breaks down. Unlike many other European countries, Pre-Nuptial Agreements are not legally binding in the UK and cannot prevent a Court from making an order incorporating what it considers to be a fair division of the matrimonial assets. But it is a factor that the Court can take into account when deciding what is fair. The Court will take into account whether there has been financial disclosure, whether pressure was applied to sign and whether independent legal advice was taken. However, a significant change in circumstances during the marriage, such as the arrival of children, could reduce its effectiveness. In addition, the longer the marriage, the less impact a Pre-Nuptial Agreement will have upon the final settlement.
I am sure that Mr Miller in a recent landmark case wished that he had given thought to a Pre-Nuptial Agreement before marrying Mrs Miller. The Millers were married for three years and had no children. The assets were owned in the main by Mr Miller before the parties married but increased in value during the course of the marriage. Mrs Miller was awarded £5 million of the £17.5 million assets. There is no doubt that a Pre-Nuptial Agreement could have had a significant impact upon the outcome of the case and Mr Miller could well have had a healthier bank balance.
A Pre-Nuptial Agreement is not only for the ‘big money’ cases. They can be useful wherever there are assets to protect. They can help to provide clarity and certainty as to what will happen, for example, to the house, savings or life policies should the marriage end. Far from being an unromantic prospect, no-one should think of marrying without considering whether they would benefit from a Pre-Nuptial Agreement.
To contact Raworths, telephone 01423 566666 or visit our offices at Eton House, 89 Station Parade, Harrogate HG1 1HF. Or visit our website on www.raworths.co.uk or email zoe.robinson@raworths.co.uk. Zoë Robinson is an Advanced Member of Law Society’s Family Law Specialist Panel and head of Raworths’ Family Law Unit.
