Pre-nuptial agreements: Asset protection for all ages

The date is set, the venue booked and the catering arrangements have been finalised. Is there anything else that you should add to your list of preparations for a wedding day?  A pre-nuptial agreement? What is it and why should you do it?

A pre-nuptial agreement is a written contract between two people who are about to marry. The agreement clearly set out the assets they have as they enter into the next stage of their lives together and specifies what should happen to them in the event that the relationship breaks down.

With a rise in the number of people getting married later in life (up 6.9% for women aged 55-59 and 6.5% for men 60 and over) and second and subsequent marriages, a pre-nuptial agreement is well worth considering.

Many people are bringing into these marriages wealth and assets that they have built up over many years, received as part of a divorce settlement or inherited from a deceased spouse or other relatives. They may have children from a previous marriage or relationship and wish to protect their assets for those children.

The most effective way to protect these assets is by entering into a pre-nuptial agreement. Once an agreement is in place, it should be reviewed following significant changes in circumstances so provisions remain relevant and are more likely to be upheld by the court if there is a subsequent disagreement.

Although there is no absolute guarantee that a court will uphold a pre-nuptial agreement on the breakdown of a marriage, without one, the person trying to protect their assets may not be able to do so.