The pros and cons of prenuptial agreements

Are prenups becoming more commonplace in the UK?

According to a study done by the marriage foundation in 2021, one in five couples married since 2000 may have some form of prenup in place.

The increase in prenuptial agreements comes alongside shifting opinions towards a more positive outlook with a 2023 YouGov survey revealing that 42% of British people viewed them as a "good idea".

Prenups are also becoming increasingly popular because of differing financial situations. There are now more people in the UK who own a business and have more high-value assets, yet there are also people who are heavily feel the effects of the current cost of living crisis.

According to money.co.uk, there were over one million more businesses in the UK in 2024 than there were in 2010. More businesses inherently means more business owners. Our research found that nearly a third of people entered into their current relationships with significant assets like property or a business. A prenup offers protection of assets that were built prior to the partnership and will mean they remain untouched should the relationship end.

Additionally, our research revealed that due to the cost of living crisis, nearly one in four people are more likely to consider a prenup. By putting a prenuptial agreement in place, both parties can ensure that they are protected financially in the event they separate, helping to mitigate any issues or stresses that the cost of living crisis may bring.

What does a prenuptial agreement mean?

Prenuptial agreements mean that both people are transparent about their assets before marriage and both of their interests are protected if the couple decide to separate.

However, having a prenup does not mean it is automatically enforced. The court will consider the agreement as one factor among many when making financial orders during divorce or separation. What’s more, the court could overrule any arrangements made within a prenup if it is deemed to be unfair; for example, if the agreement was entered into without full and honest disclosure of the financial position and assets of both parties, or if there was undue influence on one party to agreement to conditions that could be detrimental to them.

What does a prenuptial agreement do?

These agreements outline who owns certain assets when two people get married, and how assets acquired in the marriage would be divided in the event of a separation. This can include future inheritances and future business interests. They can also define financial responsibilities if the couple split, for example who is liable for any loans.

Primarily, a prenup offers clarity which can help avoid long legal disputes at what would be a time of heightened feelings and uncertainty.

The pros of a prenup

The primary benefit of a prenup is the protection of assets. Prenups allow people to protect pre-marital property, future inheritances, and business interests, from being automatically divided in a divorce. In order to protect assets, both partners need to be transparent about them which encourages openness before a marriage.

These agreements also offer financial clarity and certainty as they establish clear financial expectations and responsibilities from the outset of the marriage, so that both parties know what to expect and what is expected of them. No prenup will look the same, with each being tailored to every individual couple and their needs. This means that couples have the ability to collaborate on an agreement that works for both of them.

Having a prenuptial agreement can lead to a more amicable separation process if the couple decides on this later down the line as the terms of asset division are already agreed upon. This will ultimately save time and money on potentially lengthy legal battles, but it will also save both parties from considerable emotional distress.

The cons of a prenup

One of the most referred to downsides of a prenup is that they are considered to be unromantic and that making them can put an emotional strain on the relationship. However, prenuptial agreements are never made with the intention of separating in the future. These agreements are only used in the event they are needed – like a ‘just in case’ plan.

Another perceived negative is that some may consider these agreements to be unfair and that one party may feel pressure to accept less favourable terms to protect the relationship. When creating a prenuptial agreement, it is important that both parties contact a specialist prenuptial agreement lawyer to help resolve any potential problems like this. A lawyer can ensure that your interests are protected and support couples in creating agreements they are both happy with.

Further to this, a family law specialist can help you consider and include potential future scenarios that are otherwise difficult to anticipate. While it may not feel that there is any flexibility within a prenup and no room for circumstances to change in a marriage, prenups in the UK are not automatically enforced by courts without consideration. This means that while these agreements carry weight, the courts will consider the fairness of the agreement at the time of separation and will also consider how the couples' circumstances have changed since it was signed.

Why do I need a prenuptial agreement?

Many people associate prenuptial agreements with the rich and famous. Still, these agreements are recommended for people in a variety of circumstances.

Some of the common circumstances where a prenuptial agreement is a good idea include:

• You have substantial wealth and assets that you wish to protect

• You run a business and want to ensure its future is protected

• You have children from a previous relationship and want to ring fence assets for them

• You’re marrying someone from abroad and want to be protected from financial awards made in another legal jurisdiction

There are many other reasons why one or both of you might wish to have a prenuptial agreement in place when getting married. Of those that said that they wouldn’t want a prenuptial agreement before getting married, 59% said it was because they didn't have any significant assets to include within the agreement. However, according to Jenniffer Brunt, Head of our Family Law team, this mindset is where couples might be going wrong.

Jenniffer said: “People often think that if they don’t own a property, business or have millions in the bank, then they don’t have any assets to protect in the event of a divorce, however this may not be the case for several reasons.”

She went on to say that “assets such as pension, which a person may have had long before meeting their partner, could still be included upon divorce and be treated as a matrimonial asset.”

“We would recommend looking into a prenuptial agreement before making a life-long commitment. Whilst not everyone will feel comfortable with starting a marriage this way, in the long-term it can protect you, and your assets significantly.”

How can Slater and Gordon help?

If you’re getting married and think you might benefit from putting a prenuptial agreement in place, our specialist family law solicitors are here to help.

Our prenuptial agreement experts have the experience and the understanding you need to help you and your partner put a strong and tailored prenuptial agreement in place. To speak to one of our experts, call us now on 0330 041 5869 or request a call back.

If you're interested in hearing more about family law, sign up to our communications below. Subscribers also receive exclusive discounts on a range of services.

Sign-up today