Heads in the sand: 18 million married Brits left exposed through lack of a prenup

07 November 2023

Co-op Legal Services reveals that an estimated 18 million married Brits in the UK do not have a prenuptial agreement
Just over half (51%) of those who have a prenup said that the decision to do so was a joint decision with their future spouse.
Among married adults who don’t have prenups, half (50%) of them say it is because they trust their partners, and over one quarter (27%) don’t believe they will ever get divorced.
However, business data from Co-op Legal Services shows that the tides are turning, and the number of clients requesting a prenup has more than doubled over the past year.
Average prenup costs between £1000-£2000 to put in place, but the average value of the assets included in such agreements is between £500k-£600k

Research commissioned by Co-op Legal Services has revealed that almost four fifths (79%) of married Brits in the UK, an estimated staggering 18 million, do not have a prenuptial agreement in place, leaving them exposed to the risk of losing out in the event of a divorce or civil partnership dissolution.

Co-op Legal Services’ business data reveals that pre-nup requests have increased by 70% in the past year (based on the first 6 months of 2022 vs the same period in 2023) showing a real shift in attitudes amongst Brits.

Among married couples who don’t have prenups, half (50%) of them say it is because they trust their partners and over one quarter (27%) said they do not believe they will ever get divorced from their spouse.

The average value of the assets included in prenups sits between £500,000-£600,000, which is a lot to put at risk of losing in comparison to the average cost of putting a prenup in place, which sits between just £1,000-£2,000.

A pre-nuptial agreement is a written contract which is signed by a couple before they are married and outlines how assets should be distributed between you and your partner should your marriage result in divorce.

An overwhelming number of survey respondents highlighted that they do not have a prenup because prenuptial agreements did not exist when they got married, but this doesn’t mean it is too late for people to protect their finances and assets.

Postnuptial agreements are very similar to pre-nups; both set out exactly how assets should be distributed in the event of a divorce but unlike a pre-nup, a post-nup is drawn up once the marriage has taken place. However, just 5% of married adults who don’t currently have a prenuptial agreement have created a post-nuptial agreement instead.

Among married individuals who have a post-nup, the top reason for putting a postnuptial agreement in place was wanting to wait until after the wedding to begin the legal process (27%), whilst almost 17% said a change in circumstance in their relationship, such as adultery, was the key driver.

The research also reveals the following as the top three reasons for creating a prenuptial agreement: 1. One or both individuals will inherit money and/or assets in the future (19%) 2. Both parties get to have a say on how assets will be split if they decide to divorce (18%) 3. Financial savings held in a bank account (17%)

Ben Evans, Family Law Solicitor at Co-op Legal Services, said: “Many once believed that prenups were exclusive for celebrities, but attitudes appear to be changing as we have recognised an increase in demand for such services in the past year, with the number of clients requesting a prenup more than doubling in this period. “Whilst prenuptial agreements are seen as a recent development in England & Wales, following landmark court decisions in the last thirteen years, it is never too late to act as married couples can still protect their assets via a postnuptial agreement. “As much as we hope that a marriage will last forever, it is always sensible to prepare for the possibility of divorce in order to ensure that your finances, assets, and as a result, your well-being, is protected.”

Five points to remember when considering a prenuptial/postnuptial agreement

Be pragmatic – whilst it is not seen as the romantic thing to discuss, just like a Will, it’s one that will save so much stress and heartache in the event such a document is called upon in the lead up to separation. The statistics are clear that a large number of marriages fail, and having an agreement in place does not point towards a higher probability that your own marriage will fail. Think of it as insurance, something you don’t particularly wish to rely upon but there in case you need it.
Be open – it’s important that during any discussions on an agreement both you and your partner are open with the information available. One of the pillars of ensuring an effective agreement is entered into is being full and frank in your financial disclosure. There is little point in trying to divide the finances if you do not have a clear idea of what the extent of the financial picture is.
Seek advice – you should seek legal advice and assistance in drafting an agreement. It’s an important document that will set out long lasting implications in the event of separation. Your legal adviser will be able to support you in the drafting of an agreement, or review the agreement to ensure you are aware of the implications and highlight any areas that should be rectified before signing.
Take your time – if you are thinking of entering into a prenup, don’t leave it until the last minute as there is strict guidance in place on ensuring it is not signed close to the date of marriage. If you are entering into a postnup, there should be no rush. You should not feel pressured into signing an agreement as this may impact upon the weight that is attached to it in the event a dispute arises down the line.
Review - Whilst it’s a cliché to say that time changes everything, it’s true! An agreement entered into in the early days of marriage is unlikely to be reflective of your positions at your 5 or 10 year anniversary. A review clause should be built into the agreement that directs you to re-visit and consider the agreement from afresh, whether that be in light of a significant event such as the birth of a child, or after a fixed period of time. That way, you both are reminded of what is stipulated in an agreement and update if necessary.

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*Notes to Editor A nationally representative survey was conducted by Opinion Matters, surveying 2,009 respondents. For further information, please contact pressoffice@coop.co.uk *