Over a third of couples planning to get married would consider signing a prenuptial agreement, says new research by Co-op Legal Services. This deals with the financial consequences of a marriage ending.
When asked about the main reasons for having a prenup, protecting a large amount of money and being the main earner were on the top of the list.
Another main reason was to provide protection against the possibility of partners being unfaithful. This might be why the majority of those married with prenuptial agreements chose to include an infidelity penalty clause.
The research also reveals that 60 per cent of divorcees considering remarrying would insist on a prenup if getting married again. Mainly because they might have some assets from their previous marriages that they would like to protect.
Co-op teamed up with Sara Davison, the break-up and divorce coach, to explain the top ten reasons for signing a prenuptial agreement:
1. Being the main earner
If you have earned a lot of money before you met your partner, and have worked hard to create a certain level of income, you may prefer to protect this. However, if you have children with your spouse you might agree for them not to work so much to enable them to bring up the kids and to support your career growth.
2. Protecting a large amount of savings
If you came into the relationship with a large amount of savings it would be wise to protect it. "I have several clients who ended up with much less than they came to the marriage," says Sara.
3. Protection against infidelity
This will not prevent your partner from having an affair. It can be an uncomfortable to bring up this when talking about signing a prenup, however it would protect your pride if your money was saved and your partner did have an affair.
4. Protecting themselves should the couple go on to have children
If you go on to have children then a fair prenup would take into account any sacrifices that your partner made to bring up the children. Being a stay at home parent also enables the other spouse’s career to grow. Ensure you are fair so that this doesn't cause a rift.
5. Protecting potential inheritance
If your family is wealthier then it may be worth considering a prenup to protect your family's assets. If you do end up getting divorced then you may face handing over a large share of the inheritance money to your ex.
6. Protection of a share of a property that the couple owns and lives in together
It's difficult to get onto the property ladder so you may want to consider protecting what you have. Should the marriage end, you don't find yourself unable to get back on the ladder later in life.
7. Protecting an investment into a property that is not owed by both partners, but they live there together
This could be worth considering if you have put a lot of your savings into the house as you had more to give. For example, if you put a deposit down on a property, you will get that back, and won’t be left struggling in rented accommodation after a divorce, while you start to save up again.
8. One of the partners talked the other partner into having a prenup
Both parties have to see the value of a prenup. It doesn't always have to be one sided. More than fair prenup is a wise business decision for both partners. If one feels pressured into this, it will cause ripple effects in the relationship and if not handled well could cause the marriage to fail.
9. To ensure items that are bought for a shared home would be received back
Some people want a fresh start after a divorce and don't want to sleep in the same bed or sit on the same sofa they shared with their ex. However, if there are any particular pieces that you are attached to, it would be worth mentioning while drafting a prenup.
10. To ensure that pets are cared for in the event of divorce
Pets often play a huge role in the family. When a relationship breaks down you may find yourself left with expensive bills to pay on your own so it may be a good idea to agree to split these to ensure the pet will be well looked after. It may also be a good idea to identify who will keep the pets especially if you brought your pet into the relationship with you.
- There are more money-saving tips in every issue of Yours magazine, out every fortnight on a Tuesday.