Pre-marital contracts are entered into by agreement before marriage and attempt to set out what should happen to the couple's finances in divorce.

Pre-marital contracts

More than one in three marriages will end in divorce. This means that in life there is a high possibility that you will marry more than once. As a result couples require greater control over their financial assets.

When to consider a pre-marital contract

Where there is a substantial difference between your financial position and that of your fiancée;
Where you have been married before;
Where your family have contributed to your capital;
Where you have a previous family you wish to retain capital for;
Where you have assets you want to protect;
Where you want a method to resolve your finances in the event of your separation.

How we recommend you protect yourself

Pre-marital contracts are entered into by agreement before marriage and attempt to set out what should happen to the couple's finances in divorce. They give an agreed structure for resolving finances and may prevent the need for court involvement.

Current Law

Pre-marital contracts are not strictly enforceable in England and Wales at the moment. However, the court will consider a contract as one of the circumstances of the case in matrimonial finance proceedings and can decide what weight, if any, should be attached to it in a final settlement.

Many other legal systems, however, will enforce these agreements strictly wherever they were drafted or entered into.

What the future holds...

In the recent past, recommendations have been put forward to the government to recognise pre-marital (pre-nuptial) contracts and to make them enforceable.

The Supreme Court considered the case of Radmacher v Granatino in March 2010 and its judgment will have significance upon such marital property agreements, whether made before or after marriage.

Tony Roe is a member of the Law Commission's Advisory Group on Marital Property Agreements. The Commission is due to publish a consultation paper later in 2010, eventually leading to a report and draft Bill.