Younger generation embracing Prenups

The younger generation are embracing prenups and may be driving the rise in the number of prenups in the UK. A YouGov poll in 2023 found that almost half of under 50s think prenuptial agreements are a good idea.

Once the preserve of the rich and famous, prenups are now commonplace in the UK. Interestingly, the poll found that over 50s are less likely to think prenups are a good idea. Yet this generation might arguably have a greater range of assets to protect.

What has driven the rise in prenups?

Increased awareness – There has been significant news coverage of celebrity divorces and the impact of prenups.

Less stigma around divorce – Couples are thus more likely to be open to planning for a future divorce.

Landmark cases – There have been some landmark cases where courts have upheld prenuptial agreements. So, couples are more confident of their worth.

Business approach – The younger generation in particular seem to be taking a more ‘businesslike’ approach to marriage.

Prenups and their legality

A prenuptial agreement sets out how a couple’s wealth and assets will be divided in the event the relationship breaks down. Whilst prenups are not legally binding in the UK, landmark rulings mean that they are now taken into consideration by the Courts. The terms of a carefully crafted prenup, entered freely, are likely to be upheld by the Court. 

It is vital that each party takes independent legal advice and that all assets are declared. Any attempt to ‘hide’ assets can lead to the prenup not being upheld at the point the relationship breaks down.

There are various reasons for establishing a prenup that include:

• Where one party has significantly greater wealth and assets than the other.
• In a second marriage. Perhaps where there are also children from each relationship and you wish to protect their inheritance.
• To reduce the stress and conflict that could arise at the point a relationship breaks down, so that both parties know what to expect in this situation.
• Where there is the likelihood of a significant inheritance to come to one party in the future.

Court considerations

Before Courts will uphold the terms of a prenup they will want to consider the following issues:

• How the agreement was entered into; was there full and frank disclosure? Was one party unduly coerced or pressurised into signing?
• Are the terms of the agreement fair and do they meet the needs of both parties?
• Did each party take independent legal advice and understand the full terms of the agreement?
• The timing of the agreement. Was it rushed or was sufficient time allowed?

To ensure you have a carefully crafted prenup that will meet these challenges, speak to one of our specialist solicitors. Don’t forget that timing is key. So, make sure you plan the prenup at an early stage.

Contact:

Tony Neocleous
E: tneocleous@bird-lovibond.co.uk
T: 01895 256151

Michelle Everest
E: meverest@bird-lovibond.co.uk
T: 01895 636037