PRENUPTIAL AGREEMENTS
For many years, Pre-Nuptial Agreements have been held not to be binding in the UK Courts. The UK is one of few jurisdictions within Europe, North America, Australia and New Zealand which fails to give full effect to Pre-Nuptial Agreements. Recent developments in case law have led to a more relaxed view on the enforceability of Pre-Nuptial Agreements.

A PNA can be drawn up in an attempt to preserve assets and limit liability in the event of a future divorce.

A PNA could be influential although this will largely depend upon the circumstances at the time of making the agreement and the circumstances existing at the time of the divorce. For example, an agreement whilst relevant in the first few years of marriage may not be so after a marriage of long duration, after the birth of children, the disablement or unemployment of either party. 

It is important that both parties have independent legal advice, that full disclosure takes place and that there is no duress upon either party to sign the agreement. It is also preferable to have the document signed in good time prior to the marriage as this may later avoid the suggestion of any undue influence arising from time constraints.

It is clearly impossible to predict with any certainty what changes in circumstances may arise during the course of the marriage. It may be possible to write into an agreement provision for review or graduated lump sum payments dependant on the duration of the marriage. 

The fairness of the terms of the agreement are important, if the agreement is wholly unreasonably, the Court are unlikely to attach much weight to it as this may result in significant injustice to one party. A fair and carefully drafted agreement is likely to carry some weight with the Courts and can offer a measure of protection. 

Should you require further information or advice then please contact:

Miss Anne Thomson at fbc on 01952 208405 or aet@fbcsolicitors.co.uk

Mr Richard Barge at fbc on 01902 392404 or rxb@fbcsolicitors.co.uk.