Pre-nuptials - how do they work?

[chocolatbuiscuits]

DP and I were discussing marriage the other day. We're in the process of moving in together and neither of us wanting to rush into anything, but he mentioned the possibility of getting a pre-nuptial.

Background - we both have kids from previous relationships and have no plans for any more. DP is a high earner. He was married before and feels that his divorce cost him a lot financially - he pays spousal maintanence, child support and school fees for his DC. I work and earn enough to support me and DCs, but a lot less than DP. We both own houses and I will rent mine out when I move in to his. Mine is worth about 1/4 what his is worth and neither of us own any other real assets.

In principle I am absolutely fine about setting things up so that he (and his kids) don't ever have to worry that if we split up they'd have lost out financially. But how do these things actually work in practice? What happens if (for instance) we wanted to sell my house to give the kids some money? Or if we split up at a time when our net equity was actually lower than right now? What would happen to any money either of us inherited?

Do you have to keep re-visiting these things, a bit like wills, whenever anything changes?

If the family make-up is complex and there are significant amounts of money involved it is well worth talking to a solicitor, explaining what you want to do, what your concerns are and taking it from there. Pre-nuptials are not as easy as they sound.

Prenuptial agreements have to be freely entered and you have to take separate advice.... different solicitors... or they are invalid. Even if they are valid and above board to start with, if you are married for a long time before you split, they decrease in relevance and the normal rules are more applicable. e.g. If you both brought significant money and assets into a marriage and split shortly afterwards, that would be taken into account and not automatically regarded as 'marital assets'. If you stay married for 20 years, helping each other earn more money and acquire more assets, then the balance shifts. If someone has nothing, marries a wealthy person, gives up their job has several children and then splits several years later, the settlement (like your partner's ex wife) will reflect that.

Wills are a slightly different. The surviving spouse is usually the beneficiary, however there is nothing to stop either of you setting up wills to include money to go into trust for the children from your first marriages. Yes, it's a good idea to revisit wills periodically, regardless of your marital status.

Marital and inheritance law are very tricky areas which can go horribly wrong if you make assumptions or don't draw things up correctly. A good solicitor is worth the fee.

This link has some more information. Since it was written the case of Radmacher v Granatino has established a precedent that prenuptial agreements can be enforced by a court. Still talk to a solicitor, however.

Thanks very much Cogito. I'll check those links out. Yes I guess we would need to consult solicators. Just trying to get a feel first for the sorts of things they can specify and how they can work if your financial circumstances change.

The longer you're married and the more changes that happen, the less relevant the prenuptial agreement becomes as far as I can see. In the case linked it seems more clear-cut.... one vastly wealthy partner and a relatively short marriage. She made him a reasonable offer and the prenuptial agreement only came into play when he got greedy.