Prenuptial Agreement and Trust
28/04/2021
3 min read
When remarrying, or marrying later in life, it is prudent to consider protecting your premarital assets, especially where you have children prior to the marriage.
If you and your partner disagree over your rights over assets, the fairest outcome will have to be argued by law. There is no fixed proportion which will be awarded to either partner unless one dies without a will.
You may consider placing your assets in trust. This means that you sign the ownership of your assets to the trustees and set out your terms for how you wish them to distribute those funds to your beneficiaries. However, there are several things to note before putting your estate into trust:
- You no longer own anything you have placed in trust
- You can't ever get any of your assets or funds out of the trust, nor can the trustees share any capital or income from that capital with you
- If you place your home into the trust, you would have to pay rent to continue living there
- If you wish to buy a new home, you must do so without the use of any trust asset
- If your marriage ends in divorce, a family court judge could divide the assets in the trust and add or remove beneficiaries to include your spouse
- There are tax implications of setting up a trust*
What is the purpose of a prenup agreement?
A prenuptial agreement is a contract wherein both members of a marriage or civil partnership list all of their pre-marital assets and agree on what their individual property rights will be after marriage.
Do prenups work in UK?
A prenuptial agreement is not legally binding in the UK. It could be disputed if it has been carried out improperly. However, if you meet the following requirements, there should be little or nothing for a family court judge to dispute. Therefore in many cases a prenuptial agreement will be upheld in the court.
- Both parties must receive independent legal advice from separate solicitors
- The terms should be fair (this usually means it allows for both parties to have somewhere to live and money to live on)
- Both parties must give full financial disclosure, any attempt to conceal wealth weakens the strength of the prenup
- You should give plenty of time to negotiate terms and to reasonably consider the agreement before signing
- It is recommended that the agreement is signed at least 28 days before the marriage takes place
If any of these recommendations were not met, you can get a post nuptial agreement after the marriage takes place, making sure to have it drawn up properly. This will reinforce your prenuptial agreement.
It is also worth noting that marriage overrides your existing will. Speak to a solicitor for legal advice.
Need help protecting your premarital assets in your new marriage?
Consider a prenuptial agreement to set out your rights with your new spouse. This can save you from financial loss and bitter disputes down the line.
Sam Conveyancing can set you up with pre nuptial agreement solicitors to assist with:
- Independent legal advice
- Negotiations
- Drafting your documents
We have on hand counsel to offer guidance along the way.
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