The benefits of a prenuptial agreement
Often one person comes to a marriage with more wealth than their partner and they, or sometimes even their extended family, may be worried about protecting those assets. This is particularly so for high-net-worth individuals and those involved in family or privately run businesses. Divorce can have significant financial implications for other family members and colleagues if cash or assets have to be extracted from a business. The main benefit of a prenup is that it provides clarity to you both and will help to alleviate any fears about losing assets that you, your partner or family members may have. For example, it is not uncommon for parents to insist on a prenuptial agreement before gifting significant sums or business interests to the next generation. As well as protecting pre-existing wealth, a prenup can also cover assets which you expect to acquire in the future, such as an inheritance or business shares. It can also be beneficial for people who have concerns about arrangements for children from a previous relationship and want to ensure they are financially looked after. A prenuptial agreement can be very flexible in the issues it covers. For example, we have represented a number of high-profile individuals where privacy is key. In those cases we have been able to include non-disclosure clauses to protect their private lives. Additionally, if there is the possibility of an international divorce, this may be due to one or both of you previously having lived abroad, or being foreign nationals who relocated to the UK, then we can specify that you intend for any divorce proceedings that may arise to be taken in the UK. This may shield you from harsh foreign laws over division of assets. This will be subject to you meeting the jurisdiction requirements in the UK which are discussed further here international divorce. While some people may believe such legal agreements are unromantic or unduly pessimistic, many clients prefer the certainty that prenuptial agreement offers, and find that the negotiations enabled them to talk more openly about financial matters before they married.