Types of Prenup
Should I get a Prenup?
How can I protect my assets before I marry?
What sort of arrangement are you looking for?
David’s family is wealthy. His cousin divorced only 18 months after her wedding resulting in a long and expensive divorce case.
Accordingly, David seeks to protect his assets before his marriage and those that he may inherit.
Julie and Jason are looking for a broadly commonplace set of principles – their motivation is about clarity – they believe that a prenuptial agreement will give them greater clarity giving their relationship stronger foundations.
Keith and Karen are looking more widely than just the financial issues that may arise. They recognise that the transfer from individual to couple raises a whole range of challenges, not just as regards the prospect of divorce, but also there are questions of:
- Planning for the costs of any existing and/or future children; and
Other couples may aim, as well or instead, to enter into a prenuptial agreemen as an opportunity to work out their common values and assess points of difference to iron out before there is the commitment of marriage.
The differences between these types of arrangement (and there are many others) will mean that different processes and professional advice are needed:
- Those wanting to engage in joint financial planning like Keith and Karen are likely to treat their financial adviser, the “IFA”, as the key professional when negotiating their prenuptial agreement (lawyers being used at the end to convert the broad understanding into a formal agreement only if one is required).
Where common values are being explored - or the needs of any existing children are involved - then family consultants/ relationship professionals rather than lawyers may be the more appropriate professional, to advise on the prenuptial agreement.
David is likely to have a lawyers-only process, to outline and resolve the terms of his prenuptial agreement.
Whatever you are doing speak to the lawyers early on to find out whether what you are trying to do is viable.