To Agree or Not to Agree? – The Pre-nuptial Agreement

With the newspapers full of reports of large divorce settlements, never before has the issue of protecting one’s wealth against the unfortunate event of a marriage breakdown become so important or popular.

Pre-nuptial agreements have, in the past, been considered to be of limited value but the tide is turning. Although they are not automatically enforceable, they are now becoming a useful tool in wealth management.The Courts too are giving them more weight and indeed in some cases considering them to be highly influential when considering the issue of division of assets upon divorce.

In order to maximise this potential protection it is essential that specialist legal advice is obtained as there are many pitfalls, which can result in the agreement carrying no weight at all. Some guidelines are:

1. Both parties must receive independent legal advice
2. Both must make full and frank disclosure of their financial positions
3. Both parties must enter the agreement freely and without duress
4. The terms of the agreement must be within the boundaries of what a Court would consider ‘fair’
5. The agreement must be signed a reasonable period of time before the marriage.

And the Golden Rule? Ensure you seek expert legal advice as early as possible to gain the most protection for your wealth. For further information on pre-nuptial agreements, please contact:

Sandra Davis
Tel +44 (0)20 7440 7014
sandra.davis@mishcon.co.uk