Prenups...not just for celebrities

It has been reported that Catherine Zeta Jones and Michael Douglas are to split after 13 years of marriage. Although the couple are yet to confirm plans to divorce, it is reported that they have signed a Prenuptial Agreement ("a Prenup") which should assist them both on making the financial settlement more straightforward should they go on to divorce. In happier news it has been reported that Zahn Malik of boy band One Direction is to marry Little Mix band member Perrie Edwards. With the 1D boys having an estimated combined value of £26.33 million and with a new movie just out, the boys are expected to earn an estimated $1 billion (£640 million) by the end of this year and Malik would therefore be well advised to consider a prenup should the worse happen.   A prenup is not just for the rich and famous. It is a formal agreement entered into by a couple before they marry or enter into a Civil Partnership which sets out what is to happen to their assets in the event of a divorce or dissolution. Prenups may not be considered romantic however a properly drafted agreement may offer greater certainty to a couple should they go on to divorce. Prenups, although enforceable in most US States and elsewhere in the world, are not legally binding in England and Wales. In 2010 however the Supreme Court in the case of Radmacher -v- Granatino held that prenups should be persuasive and ought to have a significant bearing on the financial outcome of a divorce as long as they have been properly drawn up and would not be unjust to either spouse. Divorce courts have a very wide discretion when it comes to dividing assets and courts tend to consider the value of assets in existence at the time of the divorce and divide those assets between a couple in light of their respective needs and those of any children and in line with other guidelines set out by the divorce laws and case law. This can often lead to an uncertain outcome with the wealthier spouse potentially having to give away a substantial amount of his or her wealth to the other spouse. A prenup, if properly drafted can therefore offer some financial safeguards in the event of a divorce and may help in avoiding lengthy and costly legal disputes.   Kerry Russell Associate Solicitor - Gorvins