Pick up any lifestyle magazine and there may well be a story about the latest pre-nuptial agreement, or ‘prenup’, between two celebrities.
The headlines are often all about ‘lifestyle clauses’ or ‘infidelity clauses’, such as the one between Justin Timberlake and Jessica Biel, where she would apparently be awarded $500,000 if he ever cheated on her.
For the most part, however, prenups are contracts taken out between two people before marriage (or civil partnership) that provide details of how the assets are divided if that marriage fails. They’re basically a way of protecting pre-wedlock assets and previous family commitments, such as children from an earlier marriage.
While prenups may be thought of as something only the rich and famous would take out, they can be very appropriate for more ‘ordinary’ people. So long as they can be drafted proportionately, they can be a cost-effective way to protect against protracted litigation in the (hopefully unlikely) event of a divorce.
If your situation falls into one of the below categories, a prenup may be something that you wish to seriously consider:
- I am thinking of getting married and want to protect my property in case it doesn’t work out.
- I am a divorcee/widow/er about to remarry and want to limit any potential claims on the assets I retained from my first marriage in case things go wrong.
- I am about to marry but worry that if things go wrong, we could end up in a costly and lengthy argument about “who gets what”.
- I am about to marry for the second time but want to protect my assets to ensure I have something to leave in my will to the children from my first marriage if my new relationship breaks down.
- I have assets and/or property that would be hard to split 50/50.
- I want to protect inherited money or assets.
- I want to safeguard substantial savings or expected future inheritance.
Why would I need a Prenuptial/Postnuptial agreement?
With a recent report saying that the number of weddings in Jersey in 2020 dropped to their lowest level since 1944 and many couples reported to be putting their wedding date off until at least 2022 – there might never be a more opportune time for couples to consider a pre-nuptial agreement.
A “Prenup” can offer a certain amount of protection to both parties in the case of a relationship breakdown. Money can be an emotive subject in relationships, particularly when there are differences in attitudes towards spending. Agreements can be used to determine day to day accountability, such as how the mortgage/rent is paid. How bills or debts are paid, whether this will be through a joint bank account.
Individuals who are re-marrying may require a measure of certainty after having experienced a difficult divorce. Perhaps there are children from a previous marriage that need to be financial supported, there also may be a requirement now or in the future by inheritance provisions.
There may be complications of a 50/50 division of assets should the case arise. Business interests may be such that one party may need to ensure control is retained.
One party may have debt that needs consideration that could be dealt with by the incorporation of a “debt clause” in the agreement. On the other hand there may be inheritance that has been received or is expected requiring protection.
Personal property such as vehicles or household contents, if paid for jointly, in the event of a relationship split, can be decided on how they are divided. Consideration may be needed to determine what would happen to animals and pets.
Given the bespoke nature of a prenup, it is even possible to include provision for what should happen to frozen embryos, or what should happen in the event of one party’s adultery or, as recently reported, if one party releases any private information to the public such as “revenge porn”.
Join us tomorrow for the second part of this article, when we look at how to arrange a prenuptial agreement.
Written by Jamie Orchard, Family Law Partner, Viberts Lawyers.
Viberts have a dedicated team of family lawyers who are available to assist you in a way that is not only discreet but will allow us to give you answers to many of your questions. The first half an hour of our initial meeting is free of charge and can give you guidance in terms of the next steps that you take.
