UK couples – an estimated 22.7 million Brits – who are married or in a civil partnership do not have a prenuptial agreement in place, according to new independent research* conducted on behalf of Handelsbanken Wealth & Asset Management, highlighting a significant gap in proactive wealth planning.

A prenuptial agreement, or a prenup, is a legal document between two people who are about to get married or enter a civil partnership, outlining how the couple’s assets will be divided, should the partnership end.

Handelsbanken Wealth & Asset Management’s study shows that 60% of couples between the ages and 18-34 have not had a prenup drawn up, with this rising to 89% of 35-54 year olds. Perhaps highlighting the relatively new emergence of prenups in the UK, 99% of over 55s have not had a prenup drawn up.

While prenups are not automatically enforceable under UK law, the courts are increasingly accepting them as evidence of a couple’s intentions in cases of divorce. Without a prenup, families are at risk of lengthy legal disputes and a lack of financial clarity in the event of a divorce or dissolution.

When asked why they do not have a prenup in place, the most common reason cited by respondents (32%) is that they see no risk of a separation in the future. This was notably higher among over 55s, with 34% providing it as a reason, compared to 24% of 18-34s.

The research also revealed that 17% plan to share all assets equally regardless of ownership before marriage or a civil partnership, while 16% are not concerned about the division of assets at all. A further 15% stated that they could handle any potential issues through communication rather than a legal agreement, while the same number suggested that a prenup could create a sense of mistrust in their relationship.

One-in-ten couples had never heard of a prenup, highlighting a general lack of knowledge on the topic amongst married couples. 

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management, commented:

“While conversations about prenups between couples can initially feel uncomfortable and may be perceived as displaying a lack of trust, they play a crucial role in safeguarding the interests and financial security of everyone involved. Those who do not have one in place face the risk of lost assets and diminished financial security.”

Many respondents suggested that they felt they could handle issues through interpersonal communication rather than legal documents. Putting a prenuptial agreement in place will require open communication between both parties regardless and will facilitate trust and peace of mind that assets, debts and other financial responsibilities are adequately safeguarded. 

Among couples who do have a prenup in place, 31% said they have one for peace of mind around financial matters, while other common reasons included protection of individual assets, avoiding legal battles, and protecting one partner from the other’s debt or financial liabilities.

Another common reason among those who have a prenup in place was to protect a family business or professional practice, a particularly pertinent point for entrepreneurs and business owners given the potential disruption that can be caused in the event of an unexpected divorce or separation. Others also suggested that their parents had forced them into getting one in place. 

“It is encouraging to see that entrepreneurs are proactively putting prenups in place to safeguard their businesses and prevent disruption, as well as the fact that parents are beginning to take an active role in encouraging their children to protect their interests. We often advise parents to have these discussions with their children before they meet their partner, to ensure that any subsequent conversations don’t appear targeted. However, given the sheer volume of married couples in the UK who do not have prenups, there is clearly still a lot of work to be done”, Christine Ross added. 

“Our research highlights just how many married couples in the UK are vulnerable to unexpected separation or divorce, as well as a broader lack of knowledge on the subject. Seeking the correct financial advice is critical and can help to provide you and your partner with the protection and peace of mind that you need.”