What to Include in a Prenup
09 June 2017
What to include in a Prenup depends on the financial situation of you and your husband or wife-to-be. Generally it will include a list of each person’s assets, and what should happen to each of these in the event of a divorce.
What to Put in a Prenup
Everyone’s financial situation is completely different, so no two Prenups (Prenuptial Agreements) will be the same. But the over-arching benefit of a Prenup is that you get to decide how your assets should be split (if at all), should you and your spouse ever go your separate ways. This means you can ring-fence certain assets, and even your income, to prevent it going into the ‘marriage pot’.
Therefore when making a Prenup, a good place to start is to make a list of all the assets each of you own, both in your sole name and in your joint names. You then need to decide what should happen to these assets if you divorce in the future – are you going to keep them in their entirety, is your spouse going to keep them, or is ownership of them to be divided? If they are to be split, what proportion will each person get?
The type of assets to include in a Prenup:
- Property held in your sole name or in joint names
- Savings held in bank accounts
- Premium bonds
- Stocks and shares
- Pension pots
- Business interests
Often each person will have brought certain assets to the marriage and will be keen to protect them for their own means. Typically this will relate to property, money and business assets that one person has acquired before entering into the relationship. With a Prenup these assets can usually be protected from a Divorce Settlement, meaning an ex-spouse would not be automatically entitled to a share if the relationship breaks down.
Prenups and Children
It’s important to note that whatever you include in a Prenup, it must meet the financial needs of any children that you have. If the terms of a Prenup do not sufficiently provide for a child that you have responsibility for, the Court will not uphold the Prenup and will instead decide how your assets should be dealt with.
Family Solicitors and Divorce Lawyers
Our Family Solicitors and Divorce Lawyers are highly experienced in helping couples with Prenups and can help you understand what to include. We can advise what information you need to collect in order to create the Agreement, and can then draft the Prenup on your behalf. Before you sign anything, we’ll advise you of the implications of agreeing to the Prenuptial Agreement, ensuring you know exactly how it could affect you, should you and your spouse divorce in the future.