News | Royal Weddings and Prenuptial Choices
The invitations, dress, the cake and the party for the marriage of Prince William and Kate Middleton are all ready to go now – contracts for the making all signed, sealed and delivered, but what about the other contract that many couples – especially wealthy ones – are now entering into? The prenuptial agreement, or ‘prenup’.
As one of the most high profile weddings of the year – no decade – it is inevitable that every detail is (and will continue to be) scrutinised, from the choice of headgear right up to the financial arrangements made by the couple. Debate as to whether a prenup will be agreed is hot.
It is believed that there has never been a prenuptial agreement as part of any royal wedding, indeed Charles went against his advisers’ guidance when he married Camilla by not entering into one – somewhat surprising seems as most of Diana’s post wedding fortune came from Charles!
Naturally we are all hoping for a fairy tale wedding, and prenups are certainly not considered ‘romantic’, often even ‘negative’, but William in particular stands to lose a lot if he and Kate divorce further down the line, so what advantage would a prenuptial agreement afford the royal couple to be?.
Firstly it would provide some protection regarding inherited wealth. Will and Kate are both from very wealthy backgrounds, but William’s wealth is very much inherited and ancestral and many think it is only right that it is protected. Prenups are often used for this purpose, to protect future generations, and as Will and Kate’s children will be potential heirs to the throne, this is certainly an aspect that might be considered.
Preuptial agreements can also offer a way of being open, honest and fair with each other right from the start, so that should things go wrong down the line and there is a divorce, financial wrangling does not make one of the worst times in most peoples’ lives even more distressing. They can also cost a lot less than fighting a massive legal battle upon divorce.
Such an agreement could also be used to decide whether Kate would be able to retain her royal title after a divorce; whether she could keep any of the wedding gifts; whether the settlement she receives depends on the length of the marriage, if the couple have children, and how many and whether pre and post marital assets would be distinguished. The agreement could also include a review clause to enable the agreement to be amended as the relationship develops and a confidentiality clause. It is understood that Diana agreed to a confidentiality clause upon divorce and received £17 million, whilst Fergie did not and received only £3million – but she was free to speak to the media.
Clearly not the case with this marriage, but prenups also offer some protection to the more vulnerable partner in ensuring that they do not leave the marriage with nothing.
At present, prenuptial agreements are not legally binding in the UK, though they are in many US states and European countries. However, since the recent Supreme Court case Radmacher v Granatino, courts are placing an increasingly heavy weight upon them when considering how to divide assets upon divorce. It is also expected that the law relating to prenups will change before long.
Whatever Will and Kate have decided to do, it will not detract from what is sure to be a major and exciting spectacle when the couple marry at Westminster Abbey on 29th April 2011. An event which is expected to attract over 2 billion viewers!
If you have any questions about prenuptial agreements, please contact our family law team on 0114 321 1888, or email divorce-enquiries@graysons.co.uk
