Latest news with #prenup
Sky News
02-06-2025
- Business
- Sky News
The rise of the prenup - and why so many of us are now getting one
The number of couples deciding to get a prenup is increasing, with one law firm telling Money it has seen requests double in the last year. It is estimated that more than 20% of all married couples in the country have signed one of these agreements. So, what are they, and why are so many of us opting for one? The Money team took a look... A quick rundown of what a prenup is A prenup is a legal arrangement made by a couple before they marry or enter a civil partnership, which sets out plans for how their assets should be divided if they divorce or have their civil partnership dissolved. They are not legally binding, but thanks to a landmark ruling in 2010, courts are expected to uphold prenups that have been entered into freely. However, courts are still able to make decisions on a case-by-case basis, meaning prenups that appear to have been entered under pressure or written up particularly unfairly might not be given as much weight. Four reasons why they have become more popular The landmark ruling Prenups used to be associated with the ultra wealthy and famous, but after the Radmacher v Granatino ruling, people became more aware of them, Charlotte Lanning from Edward's Family Law told Money. After that decision, prenups agreed by celebrity couples made headlines across the country, making them appear "glitzy" and desirable, she said. "When I was first starting out, I would do prenups on the odd occasion, whereas now we always have a couple on the go each," the associate solicitor said. Image: Charlotte Lanning Getting married later While the ruling was a factor, Lanning thinks the more recent increase in prenups has been driven by changes in society. People are getting married later and are less worried about looking unromantic. "The fact that people are getting married a lot later in life... means there is more to argue over," Lanning said, explaining that the older people are, the more likely they are to own businesses, properties or other assets. The bank of mum and dad A lot of her clients were also relying more on the "bank of mum and dad" to fund big purchases, such as the deposit on a first home. Lanning said this made wealth inequities more obvious, putting prenups at the "forefront of people's minds" before they get married. Changing attitudes The Marriage Foundation thinktank has been looking at prenups for years, and its founder and former judge Sir Paul Coleridge told Money that changing attitudes were a big driver in the uptick. "The old Victorian view was that it was wrong to have people talking about what should happen when a marriage broke down when the clear intention was to stay married for life," he said. "I'm a convert. I felt quite strongly that it was wrong to start discussing divorce before marriage, but I have completely changed my mind. "People do quite often want to have a discussion about what should happen in the worst case." Image: Sir Paul Coleridge He explained that despite the stereotype of a rich man paying off a younger, poorer wife, that was no longer the case either. "You find people getting married now are very established financially and have made a great deal of money on their own, and this is men and women," he said. "It's certainly not only applicable to men paying women. Nowadays, it's very frequent to be the other way around." Who is signing them? Lanning said a typical client was often a high net worth individual, but it was becoming more common for young people who are in line to receive a large inheritance to get a prenup. "A lot of the ones I have done recently have been quite interesting because it is more to do with future inheritance," she said. "One of the parties that is getting married won't necessarily have the money yet, but the prenup is to make sure that if they do receive it during the marriage, that it is protected." Read the latest Money news live She explained that parents can be the driving force of these agreements, with many wanting to make sure their child keeps hold of their inheritance. Then there are divorcees. Lanning said people who used her firm for their divorce proceedings will return when they're considering getting married for a second time. "We see it often with second marriages, particularly if the parties have children from a previous marriage or relationship. Obviously, the older you are, the more money you've got because you've had longer to build it up." Sir Paul stressed that prenups were not necessary for every couple, so people should consider them carefully before signing one. Image: Pic: iStock A prenup can cover a range of topics, with Sir Paul saying he has seen some in the US that set out bizarre requirements such as the number of times a couple must have sex. Typically, it will cover property, savings, inheritance, stocks and shares, income, business interests, pension pots, and premium bonds. In the UK, a prenup cannot include child custody arrangements, personal matters, illegal activities, or lifestyle issues. When writing up a prenup, Lanning said property was the most common point of contention. "It might specify that a home becomes joint property or it will stay separate," she said. "When there's not a lot of money involved, the court will normally be looking at what the weaker financial party needs in order to rehouse. "You will quite often have a clause in there that says after a certain number of years, you can have a specific amount to rehouse, or you can have a property in a certain area, with a set number of bedrooms. "It just provides a bit of structure to try to temper down people's needs," she explained. "There is a broad spectrum of what you can assert. The whole point of it is to try to stop arguments later down the line." How long do they take and how much do they cost? The simple answer to both questions is that it completely depends on how complex the agreement is. Lanning said the general rule is that a prenup should be signed 28 days before a couple gets married. She said it's "absolutely great" if people contact a solicitor about a prenup around six months before their wedding. "That way, you can get the advice on what they do, what the process is, and then a lot of couples discuss it among themselves to decide what they want to achieve. Then they come with their practical realities, and we basically make it legal," she said. Read more from Money: Fans lose £16,500 on Glastonbury tickets Seven things you might not know about Elon Musk What happens now to Trump's tariffs? "Any earlier and you risk the financial disclosure then being out of date, which doesn't help." Sir Paul said that when dealing with a high net worth family, the whole process could cost upwards of £10,000. But in typical cases, people should be thinking "in terms of thousands" for the final cost. How should you handle having the prenup conversation? While people are less likely to find conversations around prenups uncomfortable nowadays, talking about money can still be difficult. Amy Harris, legal director at advisory firm Brabners Personal, said having a chat about prenups tends to be easier when the issue is family money or inherited wealth. "A prenup is sometimes a condition of them receiving any gifts or inheritance at all; it therefore comes across less personal between the couple themselves," she said. "We find that having full and frank financial discussions at the start of marriage can be enlightening and a good basis upon which to start their future together - with openness and transparency and a commitment to dealing with separation as amicably as possible. "It is also important to remember that these agreements often work both ways in terms of any provisions that protect the prior assets of one party, which can also protect the prior assets of the other."
CTV News
08-05-2025
- Business
- CTV News
Divorce in Canada: How much does it really cost?
Whether you're in the wrong, in the right, or things just aren't going as you'd hoped, divorce can be one of life's most emotionally challenging experiences. Divorce can also come with a slew of financial costs that many aren't fully prepared for. Legal fees are just the tip of the iceberg, and a divorce can really rock the boat when it comes to your housing, transportation, credit, savings, and investments. For couples who share vehicles, mortgages, or investments, separating finances can be complicated and costly. Below, I'll go over some of the expected and not-so-expected costs of divorce to help you prepare and plan if you and your spouse decide it's time to part ways. No two divorces are the same While the act of signing divorce papers is relatively simple, the ensuing process can be complex and affect nearly every aspect of your financial life, from income and savings to credit scores and day-to-day expenses. In some cases, such as divorces where both parties signed a prenuptial agreement, divorces can be simpler. A 'prenup' is a legal document signed by both parties prior to marriage that outlines how assets should be divided in the event of divorce. Even with a prenup, though, divorces that involve children can still get messy, as prenups typically only cover asset and wealth division. Divorce costs are rarely ever fixed. Even in a 'perfect' divorce where both parties are amicable and aren't fighting, there will still be legal and court fees for both parties to pay, as Canadian law states that only a court can pass a civil divorce. A straightforward, uncontested divorce may only cost a few thousand dollars, while a contested case involving lawyers, court hearings, and disputes over custody or property can easily escalate into tens of thousands. Legal costs: lawyers, mediation, and court fees Court fees are usually the cheapest part of the divorce, and most courts charge less than $300 for the basic divorce filing paperwork. The largest cost factor when it comes to divorce is whether or not the divorce is contested. An uncontested divorce is one that is settled amicably, with both parties agreeing to basic terms. A contested divorce, on the other hand, is one where the terms are contested, which usually involves both parties paying their respective lawyers to fight for their case in front of a judge. Hourly rates for family lawyers can start at $85 to $100 on the low end and can climb to $500 or more on the higher end. Lawyers don't just charge while they're in court, either. They can charge for phone calls, consultations, and filing paperwork. An uncontested divorce, where both parties agree on all terms, typically costs between $1,500 and $3,000. This includes legal fees of $999 to $2,400 and a basic court fee of $669. A contested divorce, which involves disputes over issues like child custody or finances, usually ranges from $15,000 to $35,000, with the same court fees. For particularly complex contested cases that require expert witnesses or lengthy litigation, total costs can exceed $100,000. Financial fallout from divorce Even when legal costs are kept to a minimum, the long-term financial ripple effects can be substantial. Most provinces practise equal division of marital property, meaning assets like the family home, joint bank accounts, pensions, and RRSPs are typically split evenly. Even if only one partner contributed to certain assets during the marriage, both spouses may have a legal claim to a portion (unless a prenup was signed to clearly define asset division). This can feel like a financial setback, particularly for the higher-earning spouse or a sole contributor. Joint debts also don't disappear with a divorce. If both names are on a mortgage, loan, or credit card, both individuals remain legally responsible for making payments, even if only one person used the account. Missed payments or disputes can damage both parties' credit scores, making it harder to qualify for future loans or housing. Investments may need to be liquidated or divided, and retirement timelines might have to be postponed due to reduced household income or split savings. Spousal RRSP contributions may also end, which would result in both parties having to reevaluate their retirement plans. Long-term costs of divorce Divorce often brings ongoing and less visible expenses that can affect your financial stability for years to come. These costs are easy to overlook, but they can add up quickly. Shared custody of children often leads to increased childcare and transportation costs, especially if parents live in separate neighbourhoods or cities. There may also be new expenses like after-school programs, separate clothing or supplies for each household, and split travel costs for holidays. If the court rules that it's necessary, child support payments can be another large drain on your savings. Separation as a 'middle ground' For some couples, separation can offer a middle ground between staying married and getting divorced. A separation allows spouses to live apart and settle key matters like finances, custody, and support, while remaining legally married. This separation can be informal, but many couples choose to formalize it through a separation agreement. This can help couples maintain certain financial benefits, such as spousal health coverage or tax advantages, that would be lost in a divorce. It can also give couples time and space to work through their separation without the immediate emotional and financial strain of ending the marriage outright. A choice that shouldn't be made lightly For some couples and some situations, divorce may be the only option. Ultimately, though, it's not a decision that should be made lightly. To ensure a smooth process, it's best for both parties to try to resolve things amicably in an uncontested divorce. The more messy and disagreeable the divorce is, the more both parties will pay in court and legal fees.
Times
08-05-2025
- Business
- Times
How to date if you're a CEO — five bosses share their horror stories
D ating as a CEO is difficult and the top of the corporate ladder can be a fretful, lonely place. There are the obvious pressures of running a company and finding time for love amid a calendar that's chockful of unromantic appointments. And when it comes to meeting that new special someone, there are some serious trust issues to overcome — the nagging thought that your new suitor might be a gold-digger, the delicate matter of asking a date to sign a nondisclosure agreement or, much later, a prenup. A bad relationship might not just break hearts, it could damage reputations and profits. The modern dating landscape is dominated by apps, but many of these are unsuitable for business leaders who wish to keep a low
