What is a Pre-nuptial Agreement?
A pre-nuptial agreement is an agreement a couple makes before the date of their wedding or civil partnership ceremony. It is a bespoke document which lays out what they wish to happen to their assets (Including savings, pensions, investments and any property they own) in the event of a divorce.
A prenup can help you to enter a marriage with more peace of mind concerning your financial stability as an individual. Another reason many couples decide to make a prenuptial agreement is to reduce the likelihood of lengthy and upsetting financial negotiations should they ever divorce. This can be a particular concern for couples who have or are planning to have children.
There was previously a misconception that entering Into a prenup was a sign that a couple had little faith in the future of their marriage. However, many are now seeing it as a practical choice which can help set the tone for clear and open communication on the subject of joint finances.
If you are currently married but wish that you had made a prenup, you may want to explore the option of a post-nuptial agreement. Unmarried couples who live together may consider a cohabitation agreement.