A prenuptial agreement is an agreement that a couple signs before their wedding that sets out how their assets will be dealt with in a divorce.
These agreements can also cover the planned use of matrimonial finances during the marriage.
A post-nuptial agreement can achieve the same thing, but this is an agreement that is entered into after the wedding.
If you are entering a marriage in which the majority (if not all) of the family income and assets stem from agriculture, it may be worth considering a pre- or post-nuptial agreement.
Our Divorce Solicitors and Agriculture Lawyers explore how prenups work in the farming industry.
Matrimonial Causes Act 1973
The mere existence of a pre or post-nuptial agreement does not automatically mean a Judge will grant an order mirroring the terms set out in the agreement.
The court's overriding objective is to consider the Section 25 factors set out in the Matrimonial Causes Act 1973 and will make a decision based on what would be fair to both parties in any given set of circumstances.
In order to have the greatest chance of being relied on, a pre or post-nuptial agreement must comply with certain requirements, as follows:
- Full financial disclosure should have taken place between the parties;
- Each party must obtain independent legal advice;
- The document (in the case of a pre-nuptial agreement) should be prepared and signed at least 4-6 weeks before the wedding to minimise the suggestion that either party entered into the agreement under duress.
Sale and Distribution of a Farm
Depending on the terms of the pre or post-nuptial agreement, the court may attempt to avoid the sale and distribution of a farm where there is a historical familial link.
A pre-nuptial agreement might cover an alternative distribution of other assets that could result in a suitable settlement whilst keeping the farm intact.
As the farming industry is often asset rich and cash poor, it would be wise to instruct experts to value the land and any other farming assets to ensure that all parties have the opportunity to receive specialist advice on the terms of the pre-nuptial agreement and its subsequent implications.
The farming business itself will need to be valued to determine how feasible it may be to obtain a cash settlement in the event of a divorce.
Contact Our Divorce Solicitors
If you would like further information on how we can help or if you have any more questions on Pre or Post-Nuptial Agreements, please do not hesitate to contact a member of our Family team on:
01619414000
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Nichola Bright
Partner and Head of Family
Nichola has over 16 years of experience acting as a Family solicitor. Nichola has specialist expertise in divorce and high net-worth financial settlements, separation, co-habitation, pre-nuptial agreements, complex disputes regarding children, fertility law and surrogacy law.
About Nichola Bright