Can I Set Up a Prenuptial Agreement in the UK to Protect Assets Acquired Before Marriage?

Question from George, Can I Set Up a Prenuptial Agreement in the UK to Protect Assets Acquired Before Marriage?

Answer from AI:

Yes, it is possible to set up a prenuptial agreement in the UK to protect assets acquired before marriage, even if those assets are located outside the UK. However, it’s important to understand that prenuptial agreements are not automatically legally binding in England and Wales, unlike in some other jurisdictions.

Understanding Prenuptial Agreements

A prenuptial agreement, or ‘prenup’, is a written contract created by two people before they are married or enter into a civil partnership. This agreement typically lists all of the property each person owns, as well as their debts, and specifies what each person’s property rights will be after the marriage.

Enforceability of Prenuptial Agreements in the UK

In England and Wales, prenuptial agreements are not automatically enforceable in court. However, judges are likely to respect the agreement as long as certain conditions are met. These conditions include:

• Both parties received independent legal advice before signing the agreement.
• Both parties fully understood the implications of the agreement.
• Both parties disclosed all relevant information about their finances.
• The agreement is fair and realistic, and does not prejudice the reasonable requirements of any children.

In the landmark case of Radmacher v Granatino in 2010, the Supreme Court stated that courts should give effect to a prenuptial agreement that is freely entered into by each party, with a full appreciation of its implications, unless it would not be fair to hold the parties to their agreement.

Protecting Assets and Profits

In your prenuptial agreement, you can specify that you wish to remain the sole owner of the assets you acquired before marriage, and the profits generated by those assets. However, the agreement must be fair and realistic. If the agreement leaves your partner in a position of serious financial hardship, a court may not uphold it.

Seeking Legal Advice

Given the complexities of prenuptial agreements and the fact that they are not automatically enforceable in the UK, it’s strongly recommended that you seek legal advice. A solicitor can help you draft an agreement that is fair, realistic, and likely to be upheld by a court. They can also help you understand the potential implications of the agreement for your future financial rights and obligations.

Please note: This information is intended to provide a general overview of prenuptial agreements in the UK. It should not be construed as legal advice. For advice tailored to your specific circumstances, please consult with a legal professional.