Many people consider prenuptial agreements of relevance only for the likes of film and pop stars, whom regularly seem to be in the news for signing such agreements. The average person may not believe they need one – and whilst it’s unlikely that you have a multi million euro fortune to protect, you may have a property and other assets that you are taking into a new relationship.

It’s an agreement entered into by a couple who are intending to marry, in which they set out their rights in relation to any property, debts, income and other assets purchased together or that they have brought into a relationship. A prenuptial agreement is intended to allow the parties to protect their separate property and other assets.

The reason for this is that under current Irish law once married all assets become matrimonial assets and unless otherwise protected are thrown into a single financial pot. A prenuptial agreement is made with the intention of contracting out of this Family Law scenario so that the parties to the agreement are treated as if they have never been married.

An agreement also seeks to allow each party to protect themselves from the others’ debts, those incurred before the marriage. With the vast amount of personal debt that many individuals have today this can be even more important than protecting the family home.

A prenuptial agreement can also address situations in which one partner leaves a secure job to go and live with their partner in, say, another part of the country or indeed the world. If the marriage then breaks down, a prenuptial agreement can take account of such losses to the party who made the move for their partner.

The primary purpose of a prenuptial agreement will frequently be to limit the potential claims on the wealth of one of the parties to the marriage. This is normally the case when one party brings considerable wealth to the relationship or perhaps one or more of the parties have been married before and have family who might potentially benefit from a step parents’ wealth.

It used to be the case that agreements made before marriage that attempted to influence the way in which the divorce courts allocated assets were of little value, in the eyes of the Irish Courts. However, the current opinion is that prenuptial agreements are enforceable and capable of variation under existing Irish law.

The Courts now take prenuptial agreements seriously, so long as the Judge considers that the agreement was made fairly and reasonably and has looked after the interests of both parties. They will carefully consider things like:

	Did the party with the most to lose understand the nature of the prenuptial agreement?
	Did he/she have independent legal advice?
	Was he/she under pressure to sign?
	Was there full financial disclosure?
	Would an injustice be done if the prenuptial agreement were upheld?

A significant percentage of marriages now end in divorce. It is understandable that mature adults, and in particular those who have been married before, might wish to agree what should happen in the event of a breakdown of the relationship. Prenuptial agreements can provide certainty and the means of protecting pre-marriage assets, inheritance, and existing family commitments such as children from a previous marriage.

Prenuptial agreements are of course not without their problems; they must be carefully drafted, and financial disclosure must be obtained before negotiations take place. Independent legal advice must be sought by both parties in order to protect the other party against the allegation of undue pressure to sign an agreement. Such important matters as these are taken into account by the courts so it’s important to get it right up front. Prenuptial agreements cannot take away the discretionary powers of the court in deciding what is fair, but a well drafted agreement will be of significant value in any decision made by the courts as it clearly shows the intention of the parties involved.

To talk to one of our family law specialists about drafting a prenuptial agreement contact LawPlus Family or alternatively view our Family law fixed fee service for further details.