Legal News | 22.04.26

Financial protection: the importance of prenuptial agreements

For individuals with existing assets, pre-acquired or family wealth, business interests, or family responsibilities, a prenuptial agreement is not simply a precaution; it is a strategic tool for protecting assets and managing risk.

A prenuptial agreement (“prenup”) is entered into before marriage and sets out how a couple intends their financial affairs to be resolved in the event of divorce. For many, the objective is not merely to avoid dispute, but to preserve pre-acquired or inherited wealth, protect business continuity, and provide clarity in circumstances where the financial landscape may otherwise become uncertain. There is a preconception that prenuptial agreements are only necessary for wealthy families.  This is incorrect; all couples getting married, particularly if there is a disparity in their assets, should consider a prenuptial agreement.

The legal position in England and Wales was firmly established by Radmacher v Granatino [2010], in which the Supreme Court confirmed that the courts should give effect to a prenuptial agreement where it has been freely entered into, with a full appreciation of its implications, unless it would be unfair to do so. Since that decision, such agreements have carried significant and, in many cases, decisive weight in financial proceedings.

That said, a prenuptial agreement will only be as robust as the process by which it is prepared. The court retains ultimate discretion, and careful structuring is essential to ensure that an agreement withstands scrutiny.

Several key principles underpin an effective agreement:

• Free and informed consent

The agreement must be entered into voluntarily, without pressure or undue influence. Timing is critical. An agreement concluded shortly before the wedding may be open to challenge, particularly where one party’s ability to refuse is compromised. As a matter of best practice, the agreement should be finalised and signed at least 28 days prior to the ceremony.

• Full and frank financial disclosure

Transparency is fundamental. Each party must have a clear and accurate understanding of the other’s financial position at the time the agreement is made. Any failure to disclose material assets or liabilities is likely to significantly undermine the weight afforded to the agreement.

• Independent legal advice

Both parties should receive advice from separate lawyers. This ensures that each individual has a proper understanding of the terms and their implications, and reinforces the integrity of the agreement.

• Fairness at the point of enforcement

Fairness remains the court’s overriding consideration. Even where all procedural safeguards are met, an agreement will not be upheld if it fails to meet the reasonable needs of one party or any children of the family.

A prenuptial agreement should also be viewed as a living document. It ought to be reviewed in light of significant life events, including the birth of children, material changes in financial circumstances, or relocation to another jurisdiction, to ensure that it continues to reflect the parties’ intentions and remains capable of being upheld.

While a prenuptial agreement cannot exclude the jurisdiction of the court, a carefully prepared and regularly reviewed agreement will carry substantial weight and can significantly reduce the scope for dispute. It also provides a level of certainty that is often invaluable in the context of relationship breakdown.

Similar considerations apply to postnuptial agreements, which are entered into during a marriage and can be equally effective in defining the parties’ financial arrangements.

Early, specialist advice is critical. Our Family team at Wansbroughs regularly advises on the preparation of bespoke nuptial agreements designed to withstand scrutiny and protect long-term interests.

For further information, please contact our family and divorce solicitors on 01380 733300 | family@wansbroughs.com.