Is Getting A Prenuptial Agreement Worthwhile?

A lot of marriages end in divorce. In the United States, the incidence of divorce is at 4.95 per 1,000 people. Coincidentally, the US has the highest divorce rate worldwide. Great Britain ranks fourth, with the current rate of divorce at 3.08 per 1,000 people, and thus has the most number of divorces among European nations. Both nations are over the global average, which is 1.3 per 1,000 people. Considering the high rates of divorce, prenuptial agreements have become essential, even in the UK where historically have not been considered legally valid. It can be recalled that it was only in 2010 in a divorce case between German heiress Katrin Radmacher and her husband, Nicolas Granatino, when the UK Supreme Court determined that such agreements are legally binding, consequently altering the landscape of divorce settlements.

What areprenuptial agreements?

Prenuptial agreements are a contract which partners make before marriage and these documents detail how the couple will hold their property during their union and what should happen to their property and relevant financial responsibilities in case they get divorced. In countries where same-sex civil partnerships are allowed, partners can get preregistration agreements to guide wealth division once their civil partnership is dissolved.

Conditions to satisfy when making prenup agreements

Primarily, the parties must consent to this contract willingly or without undue duress. It is also necessary that both husband and wife, or partners in the case of civil partnerships make informed decisions. Therefore, both sides usually must have independent legal advice so that they can be advised about the implications of such contract. Both partners should also agree to full financial disclosure prior to the making of such contract.

Are preregistration and prenup agreements worthwhile?

If you have substantial assets that will be on the line in the event of a divorce or dissolution of civil partnership, yes, such agreements are beneficial. With these agreements, you avoid having to share your entire wealth with your spouse. Also, having one will ensure that you and your partner will not argue about issues relating to property, allowing you to most likely have a friendly separation. In countries or states where these agreements are not upheld in their entirety, they will still have a bearing on the court's ruling regarding asset distribution.