Thinking of getting married? You’re not alone. Each year in the UK there are around 220,000 marriages, according to ONS figures. Now, while we all like to think we will stay together forever, the UK’s divorce rate does stand at around 42%, meaning around 92,400 of those happy couples won’t.

Divorce can be expensive, especially if one member of the partnership enters the marriage with significantly more wealth than the other. In this guide, explore four steps you should take to protect your funds from the prospect of a breakup before you get married.

Step 1 – Discuss your financial situation 

Before getting married, it is essential to have open and honest discussions about your respective finances with your partner, and your want to separate your finances, should the worst happen. 

These conversations might seem difficult, cynical, and unromantic, and they might be, but they are crucial if you want to have a healthy and open relationship going forward into the future. A marriage is an incredibly close partnership – emotionally, financially, and legally – and as such, you shouldn’t try and hide your financial situation. It’ll come out regardless!

Step 2 – Seek advice

The first step you need to take if you want to separate your finances is to get legal help. Seeking the advice of a family lawyer can provide you with the guidance you will need. They will be able to talk you through the various options available to you, what the process might involve, and then put your wishes into action in the most legally sound way possible.

Step 3 – Prenuptial agreement

A prenuptial agreement (also known as a prenup) is a legal document that outlines how assets and finances will be divided in the event of a divorce. Prenups are agreed upon between both parties in the relationship and while they aren’t legally binding under English Law, many judges will consider them should divorce occur and there is a disagreement about how assets are to be separated. 

It’s crucial that couples entering into a prenuptial agreement gain independent legal advice, disclose each other’s respective financial situations, and don’t pressure the other to enter into the agreement. If any of these prerequisites are crossed, a judge may disregard the agreement.

If you do set up a prenup, it’s important to check it’s valid before the wedding – double checking can save you issues later down the line.

Step 4 – Consider a trust

If you don’t want to set up a prenuptial agreement, you could also consult with a trust and estate planning specialist to explore the possibility of setting up a trust to protect your assets. A trust is a way of separating assets and preserving them for certain beneficiaries. Not all are ‘safe’ from divorce, but they can be beneficial in certain situations, or if they are set up overseas.

Published by HOLR Magazine.