Many a times we hear about the rich and famous signing pre-nuptial agreements to protect their assets. Regardless of whether it is their first or fourth marriage, we see news stories splashed across the front pages of glossy magazines stating that a Hollywood Actor and their intended spouse have signed a pre-nuptial agreement. However, it should be noted that pre-nuptial agreements can be prepared for anyone to protect their assets and are not just something the rich and famous.
A private agreement signed by both parties prior to marriage (pre-nuptial agreements) act as a legal document that helps individuals to protect their personal assets, should the marriage come to an end. With those residing in the UK spending an estimated £10 billion on weddings each year, it comes as no surprise that there has been a rise in the number of people seeking pre-nuptial agreements. It should be taken into consideration that in the UK, the agreement must be signed at least 28 days prior to the wedding taking place.
But why are these agreements created? Many are produced for the following reasons;
- Wealth – for those entering a marriage with a great deal of wealth, pre-nuptial agreements can help to provide protection of assets.
- Inheritance of wealth – in some circumstances, individuals will be expected to inherit a great deal of wealth from a parent or grandparent should they die. As a result, pre-nuptial agreements can help ensure that this inheritance is protected in the event of a divorce.
- Business protection – for those who own successful businesses, or are starting businesses that are expected to be successful, pre-nuptial agreements often provide protection of business assists should a marriage come to an end.
- Protection of child inheritance – for those that have children from previous marriages, pre-nuptial agreements can help protect any inheritance that the child is entitled to, from being accessed by a new partner.
In some cases, it is common for only one half of the engaged party to be considering a pre-nuptial agreement. If you have not personally considered having an agreement put in place, but your partner has suggested one, it is important that you understand why they want one and how it could impact you.
If you and your partner are considering a pre-nuptial agreement, or seek further information about how implementing one could impact you, contact our team today for a breakdown of the process and your rights!