Pre nups and post nups
A pre nuptial agreement is a contract signed before a marriage, setting out what should happen in the event the marriage fails. They can provide certainty and security, and we are seeing more and more enquiries about them. A post nuptial agreement is the same type of contract, but signed after the marriage.
Historically the courts have refused to recognise or uphold pre-nuptial agreements, and they are still not binding under English law. However the courts are placing more and more weight on the existance of a pre nups, and in a leading case, the pre nup was described as being of “magnetic importance”. More recently, in a widely reported landmark decision in July 2009 the Court of Appeal upheld a pre-nuptial agreement. In future, in the right circumstances, they are likely to followed. We understand this case is being appealed to the House of Lords, so watch this space for further developments.
Post nuptial agreements are relatively unusual, but earlier this year the Privy Council ruled they can be binding in certain circumstances. For this reason we expect to see an increase in this type of agreement.
The law is in a state of flux which highlights the need for expert advice.
