Britons are significantly less inclined to enter into prenuptial agreements compared to their counterparts in France and Spain, according to research commissioned by the app-based bank Bunq. The study surveyed 5,794 individuals across Europe.
Across Britain, only 24 percent of respondents stated they would opt for a prenup if marrying, or if already married. In contrast, 43 percent of French individuals and 36 percent of Spaniards indicated willingness to use such agreements. The Netherlands also showed a higher rate at 40 percent.
A prenuptial agreement, or prenup, is a contract signed before marriage that outlines how assets would be divided in the event of a divorce or separation. While these agreements can offer financial certainty and potentially simplify divorce proceedings, their legal standing differs across countries.
Legal Standing of Prenups
In England and Wales, prenups are not legally binding and can be overturned by a court. Judges retain the final authority on financial settlements, considering factors such as whether the agreement was made freely, understood by both parties, and if its outcome remains fair at the time of divorce. While a prenup carries weight, it does not guarantee asset division as specified.
France and Spain operate under different legal frameworks. In France, a 'contrat de mariage' allows couples to pre-determine asset division. If no contract is signed, a default regime applies, where assets owned before marriage remain individual property, while those acquired during marriage are generally considered common property. Couples can opt for a different arrangement before a notary.
Spain utilizes a similar system known as 'capitulaciones matrimoniales.' The default Spanish regime, 'sociedad de gananciales,' involves sharing gains made during the marriage. However, Spain's regional laws add complexity; for instance, Catalonia follows a separation of property default, where each spouse typically retains ownership of their own assets.
Attitudes Towards Prenups
The research suggests that stated intentions regarding prenups may differ from actual practice. Only 3 percent of married Britons currently have a prenup, compared to 13 percent in both France and Spain.
Purpose of Prenuptial Agreements
Typically, prenups are intended to protect assets brought into a marriage by an individual. They can be particularly relevant for individuals with children from previous relationships, or those with family businesses or inheritances to safeguard. Agreements can distinguish between pre-marital assets and those accumulated jointly during the marriage.
For a prenup to have a higher chance of being upheld in the UK, both parties should enter the agreement voluntarily, fully understand its implications, and ideally have independent legal advice. The agreement should also be negotiated and signed well in advance of the wedding.
Joe Wilson of Bunq noted that the non-binding nature of prenups in the UK may contribute to lower adoption rates. He emphasized the importance of financial conversations for all couples, irrespective of their relationship status, wealth, or fame.