It has been reported that just 2 years after they were married, Jennifer Lopez has filed for a divorce from Ben Affleck (although, according to the documents filed, they separated in April this year). It is rumoured that the pair did not enter into a prenuptial agreement (‘PNA’) and that they are currently engaged in negotiations about how their assets should be divided between them.
Although divorce laws are different in California than they are in England and Wales, it is worth reminding ourselves about the merits of entering into a prenup and why more and more couples are choosing to do so.
A prenup is a legal document that a couple can enter into prior to getting married that sets out what the couple has agreed should happen to their income, assets and liabilities in the event of a divorce. Often described as ‘unromantic’, the discussions involved require both parties to disclose their financial situations (e.g. what their incomes are and what assets and liabilities they have along with any potential inheritances).
Although these can be difficult topics to discuss, they allow both parties to be open and honest about what they have at the outset of their married life together and, in the event of a divorce, allow them to have a clear understanding of what they are likely to walk away with. This can help to reduce the stress and conflict that is often involved in the course of a separation and particularly if there has been a long (or short) period of cohabitation when the court is considering the length of the marriage (which is a factor, amongst others, that it should have regard to).
If one party is in a stronger financial position than the other, a prenup can help to protect the assets that they bring to the marriage by making it clear that the other will (usually) not be entitled to a claim upon those assets (e.g. pre-owned property, inheritances or business interests etc.) on a divorce.
However, it is not only the financially stronger party that benefits from having a prenup in place. They can provide peace of mind and control to both parties in the event of a divorce and (hopefully) stop the court from becoming involved in the couple’s finances. Without having a prenup in place, unless an agreement can be reached separately, the courts in England and Wales will need to determine how the couple’s finances are divided and this can often lead to unhappiness on both sides and months of uncertainty about the future (and especially given the discretionary nature of our family finance justice system).
Prenups are becoming increasingly common for couples from all walks of life. If you would like advice about entering into a prenuptial agreement, please email mail@burgessmee.com.
