As Katie Price reportedly plans wedding number 4 we consider some common misconceptions around prenuptial agreements.
We have previously commented on the Kim Kardashian and Kayne West divorce, but it seems there is some happier news in the celebrity family law world as wedding bells are ringing for Katie Price and Carl Woods.
It is widely reported that the couple are planning to marry later this year.
Katie Price has been married three times and engaged to be married on a further three occasions. Each time Katie has reportedly insisted on entering a prenuptial agreement. But what is a prenuptial agreement and are such agreements just for celebrities or for wealthy individuals?
What is a prenuptial agreement?
A prenuptial agreement (also known as a premarital agreement or pre-nup) is a formal written agreement entered into between two parties prior to their marriage. It is a detailed written contract. It is a bespoke document, individually designed for a particular couple and their exact needs.
Whilst prenuptial agreements are not included in statute, if entered into in accordance with the correct evidenced process and in the absence of duress or coercion then they will be held to be binding. Couples therefore should expect to be held to the terms of the prenuptial agreement.
So what is the correct process?
- Both parties must freely enter into the agreement with neither party under duress;
- Both parties should receive independent expert legal advice form a Family Lawyer. Parties may also require additional financial and tax advice;
- There must be proper time to deal with all of the steps fully; and
- There must be a documented process of disclosure with both parties having a full appreciation of each other’s financial situation and the implications of the agreement.
Prenuptial agreements are certainly not just for celebrities or for the rich and famous.
Pre-nups are a powerful way to protect your family legacy which may include your business, capital, property and income. Put simply, if you would like to regulate the financial outcome on your divorce and avoid lengthy and costly disputes then you should consider a prenuptial agreement.
Whilst a prenuptial agreement may not be the most romantic notion, it gives parties control over what happens with their finances should the worst happen and their marriage breakdown. Knowing that you have your affairs safeguarded can also offer peace of mind at a stressful time, leaving you time and space to focus on your future together.
Whilst it remains to be seen as to whether Katie will actually go ahead with wedding number four, it seems almost certain that there will be a prenuptial agreement with her husband to be to protect Katie’s amassed wealth.
If you would like to chat about prenuptial agreements or how to protect your assets, please do get in touch with a member of the Family Team who will be happy to help.