A prenuptial agreement (prenup) and postnuptial agreement (postnup) have become increasingly popular in recent years across the UK. They are commonly used amongst high-net-worth individuals as a way of protecting their wealth when getting married or after marriage. Although not legally binding in the UK, if the agreements are properly executed and independent legal advice upon the terms given to both parties , the Court5 will in likelihood give some heed to the pre nuptial agreement.
In this article, we will analyse the main difference between both agreements. To find out whether they are equally as effective as one another and what to expect if you choose to have one. If you are currently going through a divorce, our divorce lawyers in Streatham can help guide you through the process.
What is a Prenup?
As the name might suggest, a prenuptial agreement (prenup) is made before two individuals decide to get married. A prenup is a contract that a couple enters before their marriage that details how the assets of each spouse should be distributed in the event of divorce.
Prenups can cover several assets including savings, pensions and property, alongside other high-value items such as jewellery. A prenup aims to avoid assets becoming wrongfully placed in the event of a divorce. By setting out who owns what prior to the marriage in an attempt to ringfence and protect those assets from being included in the marital joint pot. The goal of the prenup is to reduce the possibility of financial disputes associated with divorce and to circumvent costly divorce proceedings if such ever arise. To learn more about matrimonial property, needs and agreements, visit the government’s website.
What is a Postnup?
In recent years postnuptial agreements (postnups) have become increasingly common. In many ways, postnups are identical to a prenup. The difference between them is that a postnup is agreed upon after the wedding has taken place. Postnups cover all of the same assets as prenups and again the main goal is to ringfence assets which would otherwise be included in the joint matrimonial pot.
It is also important to note that if a prenup agreement is changed or updated after you are married, it will be obsolete and changed to a postnup.
Which is Better?
You might be wondering whether prenups and postnup agreements are equally as effective as each other. Since prenups are agreed upon before the marriage, it can be easier to determine who owns what while both parties are leading independent lives. After the marriage has run a course of time it can be harder to decide which assets belong to which spouse, therefore a postnup agreement can be more difficult to create. The court will pay attention to either contract if they have been executed properly.
What is Included in Both Legal contracts?
Here are some of the common elements that can be taken into consideration in both a prenup and a postnup:
Property and inheritance
How to Make a Prenup or a Postnup
At Van Eaton Solicitors, our divorce lawyers in London have extensive experience investigating the financial disputes of spouses. This ensures that any financial settlement is fair and reflects the true status of divorcing or separating individuals. Our experienced family lawyers can guide you through the process if a prenup or postnup is involved in the divorce.