Sherry-Ann McGregor, Contributor

McGregor

Many persons still believe that prenuptial agreements are the province of the rich and famous.

However, prenuptial agreements have far greater applicability than we perceive. Even working class couples who are contemplating marriage or cohabitation are well advised to consider signing prenuptial agreements. These agreements ensure that, in the event of divorce or separation, there is an existing framework for couples to discuss their property and financial arrangements.

Demise

Admittedly, the introduction of the topic of prenuptial agreements to one's intended may lead to the demise of the relationship. It is distinctly unromantic. One may question whether it means that the party who raised the subject is already contemplating separation or divorce in a relationship which should signal a lifetime commitment. Does it mean that there is lack of trust between the couple? The party with greater financial stability may risk the resentment of the less wealthy partner.

Despite these negative views, prenuptial agreements now have a clearly established place in our law. By section 10 of the Property (Rights of Spouses) Act, legislators have made it absolutely clear that these agreements are enforceable. It would therefore be advisable to consider what benefits exist in signing prenuptial agreements.

Divorce is common, legal battles are costly

Many marriages end in divorce, and couples spend substantial amounts of money fighting legal battles over property acquired before or during marriage. Money which might have been directed towards the maintenance of children or the creation of trust funds is often spent on legal fees. A prenuptial agreement may mean that that these costs are avoided or at least minimised.

A relationship is a partnership

It is important that couples have discussions regarding prenuptial agreements early in the relationship. This should include a frank financial discussion so that neither party is surprised by one partner's financial status. Even before marriage is contemplated, each party should become aware of the other partner's financial obligations and expectations. This is especially important when either party is embarking upon a second marriage and has children or assets which were previously acquired.