A sharp economic downturn places enormous pressure on people from all walks of life: managers who must steer businesses through the troubled waters of recession, people on the brink of redundancy, graduates who cannot find work and the retired who are seeing returns on their savings dwindle.

 

Behind these headlines are other less well-publicised victims of recession: couples whose marriages breakdown under the strain.

 

However one can often mitigate potential disaster with proper planning. Just as businesses can cut costs to ride the ravages of a contracting economy, couples can take proper legal advice before tying the knot to protect their personal wealth if their marriage fails.

 

Prenuptial agreements are in great demand from foresighted couples who wish to avoid the expense of a messy, contested divorce settlement when ragged nerves can make emotions run high.

 

A prenuptial agreement sets out a couple’s financial intentions in the event of a break up. They are often used to protect items that one, or both, parties consider their own rather than jointly-owned assets.

For example, it could be agreed that the husband or wife will not receive a share in any inheritance which the other might receive or in any assets, such as property, which the other may bring into the marriage.

 

This can be very important, particularly if people marry later in life or have children from a previous relationship whom they want to protect financially.

 

Divorce gives rise to many potential claims and complex issues, including support for a husband or wife, child support; the allocation of any lump sum; the transfer of property and pension-sharing orders. If a couple cannot agree, a court can be asked to decide how assets and income should be distributed.

 

In reaching a decision, the courts have said that the terms of any prenuptial agreement must be considered although, currently, a judge would not be bound by them.

 

However, the courts are steadily moving towards the view that prenuptial agreements should have greater force in such circumstances and the clear recommendation is that anyone contemplating marriage should consider entering into a prenuptial agreement and take full advice on the options and consequences.

 

There is nothing wrong with being pragmatic as well as romantic.