Prenuptial and Post Nuptial Agreements are very useful as they include the details of how your assets and liabilities should be divided upon your separation. Once an agreement is validly executed, the terms of the agreement are legally binding upon both parties.
We would strongly recommend entering into a Prenuptial or Post Nuptial Agreement in the following circumstances:
- Parties to the marriage have unequal wealth;
- Either party is likely to receive family wealth in the form of a gift or inheritance during the period of marriage;
- One party or both parties have been married before, particularly where either party has children from a previous relationship;
- Either party is likely to receive a gift or inheritance during the period of marriage from a third party.
While entering into a Prenuptial or Post Nuptial Agreement may be more suitable for parties who fall into one of the categories outlined above, entering into this form of agreement affords both parties protection as it allows them both to plan for and agree how their property would be divided in the event of separation. Having such an agreement in place while the relationship is amicable would also help avoid entering into protracted court proceedings at a later date, upon the parties’ separation. If parties have not entered into a Prenuptial or Post Nuptial Agreement and they do separate at a later date, the law provides a default position for how a family’s assets and liabilities should be split.
