Pre and post nuptial agreements have steadily risen in prominence in the UK. Where once they were seen as the preserve of American film stars and media tycoons, they’re now more likely to be included in everyday relationships. With some reports suggesting they’ve become a feature of one in five marriages in England and Wales, this crossover into mainstream acceptance shows no signs of slowing down.
Of all the couples who might benefit from this type of agreement, those with overseas connections will rank highly. Global families often have business interests, properties, and a diverse array of other precious assets spanning different countries. With so much value to protect — or secure a share in — international prenuptial agreements could prove priceless if the relationship should come to an end.
However, there could be significant complications for anyone who thinks that this type of arrangement might be right for them. Many of these impediments stem from the striking contrasts between one legal system and another. If you want to ensure that your international prenup is worth the paper it’s printed on, you’ll first need to understand how it works in practice.
In this blog we’ll delve into this intricate subject in detail, giving you the information you’ll need to make smart decisions that could pay dividends in the future.
What are the Uses of Prenuptial Agreements?
A prenuptial agreement is a written document entered into before a marriage or civil union that explains how assets will be shared if a couple separates. They are usually created when one partner brings more valuable possessions into a relationship than their other half, with the intention of ensuring that certain items won’t be shared if they part ways.
Although not strictly legally-recognised in England and Wales, there is a tendency for the courts to uphold prenuptial agreements on certain conditions. In effect, as long as the document was freely entered into and in good time by both people, neither has concealed any aspects of their wealth, and they are judged to be fair, they will usually be enforced. Often a feature of high net worth divorces, they can ensure that parties know exactly what they’re entitled to at the end, minimising the potential for a protracted and bitter divorce process.
For anyone looking to protect the likes of overseas properties, business interests, and investments from division, they represent a useful form of wealth protection. It’s even possible to enter into a nuptial agreement after marriage, although this is known as a postnuptial agreement. To find out more, comprehensive legal advice is essential, as it will ensure that any contract is both sound and in your best interests.
What Are International Prenuptial Agreements?
An international prenup is a document detailing asset division that is valid in multiple countries. Enforcing one in the UK is relatively simple, since it will usually be sound if it was drafted in accordance with our laws. However, if either party has ties overseas, the presence of additional legal systems — or jurisdictions — can complicate matters.
If your relationship has a global dimension — i.e. one or both of you has connections to more than one country — it’s critical that you understand how each jurisdiction might interpret an international prenup. One approach would be to base it in the country you typically call home and then mirror/adapt the document to the other places you spend time. However, even this process, known as ‘rooting’ can still be a complex operation, as translating the terms of an international prenuptial agreement from one legal system into another can be extremely challenging.
Will My UK Prenuptial Agreement Be Valid Abroad?
For British spouses living mainly abroad, it’s important to understand if your prenuptial agreement will be recognised and enforced outside the UK. The longer you spend abroad, the greater the likelihood that you’ll pass the threshold to be considered a resident of your newly-adopted home. At this point, a foreign jurisdiction might attain equal, or even greater, power over your circumstances, thereby diluting — or even negating — anything you have agreed to in England and Wales.
Unfortunately, there is no simple answer for anyone wondering if their UK agreement will be valid elsewhere. Because each country has its own unique laws around divorce, the picture will change from one place to another. The best thing you can do to give yourself a better chance of it being upheld is speak to a solicitor who specialises in international prenuptial agreements to determine the best path forward.
Are International Prenuptial Agreements Valid in England and Wales?
Although other countries do apply English law to cases within their own legal system, the reverse does not apply. Therefore, a binding foreign agreement won’t automatically be upheld in the UK. Ultimately, our courts will stick to the principle of ensuring that both spouses reach a fair and mutually reasonable outcome, regardless of what has been agreed elsewhere.
In Spain, couples often sign prenuptial agreements before marriage. However, even if you and your ex-partner made this agreement in good faith, English courts might ignore it. Ultimately, they are not obliged to uphold anything they might interpret as being in any way unbalanced, or at odds with their guiding principle of fairness to both parties.
If you’re keen to know more about nuptial agreements, you can read our informative blog here.
Secure What Matters Most With Lowry Legal
It’s perfectly natural to have concerns about what could happen if your relationship comes to an end. With future child arrangements to consider, finances to share, and living arrangements to be decided, there’s a lot at stake — all of which could come at a time when emotions are running high. When the prospect of divorce includes an international aspect, you can then add the daunting prospect of choosing between different jurisdictions into the mix.
At Lowry Legal we understand how important it is to secure your fair share or protect what you’ve worked so hard for. We know that, just as the countries covered by your international prenup won’t have the same legal systems, nor do two relationships contain the same features and complications. As a result, we’ll take the time to understand what you want to achieve, before using our knowledge and experience to devise the best strategy to get you there.
A member of the prestigious Legal 500, we specialise in more complex, high net worth relationships. This means that we’re perfectly placed to offer robust advice on the trickiest topics. Whether your priority is the family business or holiday villa, our understanding of international divorce can prove instrumental in guiding you towards international prenuptial agreements that cross borders and last.
To speak to one of our expert family lawyers, contact us today.
