The Price of Love: Prenups and Fairness in 2021
The power of love, it’s a curious thing.
Planning for your wedding involves flowers and romance. But taking the time to set up a prenup can feel like anathema to your big day. However, if things don’t work out, the costs can be high indeed.
So, why is it so important to consider getting your affairs in order before marriage?
And what can it cost you if you don’t?
Where are Prenups now?
In the past, the maximum claim levels were tied to the individual ‘needs’ of the wife. This often resulted in case settlement values that were below 50%.
These values became more egalitarian after White v. White, but wrinkles still exist. In an age of global travel, there are issues around legal jurisdictions — with each country taking a different approach to enforcement.
This can result in the creation of a blanket document that covers all parties. Crafting it can be time consuming, but it is often necessary. Radmacher v. Granatino set the precedent that prenups are generally followed unless they are deemed ‘unfair’.
And when it comes to conversations about ‘fairness’, wealth and inheritance are top of the list.
Rights, Family, and Your Future
While each document is as unique as the couple that took it out, ringfencing preacquired or inherited wealth is a key goal for many. Whether you are cohabiting or getting married, negotiating the fair protection of significant assets is at the heart of many prenuptial agreements.
If you are cohabiting or in a civil partnership, it’s vital to understand the rights you have and work to enforce them. If the acquisition of rights is important to your relationship, it’s important to speak to a lawyer about a cohabiting agreement. This may be useful in connection to pensions, property, and maintenance. In many cases, when cohabiting couples split, one partner has found themselves left with nothing or very close to it.
Meanwhile, divorce can see individuals landed with a large lump sum that they may not have the experience or expertise to use. Thankfully, many legal services allow for cash flow and actuarial modelling so that you can see how different payment options will work in time. This can streamline the process, providing peace of mind during a difficult time.
While there are any number of knots, unpicking them doesn’t need to be hard.
Resolving the Issue
Thankfully, there are options available. Staying well informed about the process is key. Paying a lawyer for an hour of their time can validate your specific questions and help you to get the insight you need.
When it comes to solving the issue, the three golden rules are-
1. Choosing your lawyer carefully: Working with a lawyer is a potentially long-term relationship. Ask for references, look at how their expertise relates to your case, and make sure you can trust the person. Don’t be afraid to shop around and do your homework. And if you aren’t happy with your lawyer, find another one.
2. Listening to the advice: If you’re paying for good advice, make sure you consider it. Lawyers are not emotionally attached to your situation. The Greek chorus of friends and family can drown out sensible advice in favour of knee-jerk action.
3. Trying to stay on good terms: Being amicable and respectful may cause short-term pain, but it allows you reap long-term rewards. This is especially true where children are involved, and the priority should always be maintaining a healthy and respectful relationship between parents.
Ultimately, securing a prenup allows you to enter into a relationship knowing that — no matter what happens — each partner will be protected financially. And in a world of litigation, inequality, and financial uncertainty….that’s not a bad thing at all.
This material is adapted from the Reddings Inspire podcast. If you want to learn more, you can check out our archival feed. Or you can take a look at our regularly updated blogs and articles to learn more about our range of services.
