Prenuptial Agreement Template
Prenuptial Agreement Template
Prenuptial Agreement Template
This prenuptial agreement template is based on a free document supplied by The Legal Stop Limited through its
website www.thelegalstop.co.uk
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THIS AGREEMENT is made the <<INSERT DAY>> day of <<INSERT MONTH & YEAR>>
BETWEEN:
(2) <<INSERT NAME OF SECOND PARTY>> (the “Second Party”) hereinafter jointly
referred to as the “Parties”.
WHEREAS:
i. This Agreement is entered into and conditional upon the intended marriage or civil
partnership between the Parties.
ii. The Parties are presently unmarried and intend to be married to each other and in
anticipation of such marriage or civil partnership, the Parties desire to fix and
determine various financial relationships that will apply during their marriage or civil
partnership and upon the termination of their marriage or civil partnership whether by
death, divorce or otherwise.
iii. Information about each of the Parties' assets, liabilities and approximate current
income has been exchanged prior to entering into this agreement and summations of
said information for each Party is contained herein in Schedule A.
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iv. Each Party has had the opportunity to fully examine the financial disclosures of the
other Party as summarized in Schedule A.
v. Each Party acknowledges that to the best of their knowledge they have made a full
and complete disclosure of their respective financial conditions to the other Party.
vi. Both Parties intend to be legally bound by the provisions of this Agreement, and
agree that they and their personal representatives shall be so bound.
vii. Each Party represents to the other that they have adequate separate resources for
their own support.
viii. Each Party acknowledges that they had obtained Independent Legal Advice before
signing this Agreement.
ix. Each Party acknowledges that they enter into this Agreement freely and under no
duress or undue influence upon his or her decision to sign.
IT IS AGREED as follows:
1.1 In this Agreement, unless the context otherwise requires, the following
expressions have the following meanings:
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"Earned Income" means any income obtained by a Party after the
Effective Date of this Agreement that does not meet the
definition of Passive Income (see below). Types of
earned income include, but are not limited to, salary and
bonus from employment, earnings derived from the
performance of services as an independent contractor,
and income derived from a business run as a sole
proprietorship;
“Effective Date of this means <<INSERT DATE>>, the date upon which the
Agreement” Parties are legally married or entered into a civil
partnership;
"Intestate Succession means the probate laws that control distribution of the
Laws" assets of an estate for a decedent dying without a valid
last will;
"Omitted Spouse" means a surviving spouse who has been omitted from
the last will of the decedent and seeks to receive a
forced share of the decedent's probate estate under
applicable probate law. The term also includes a
surviving spouse named as a beneficiary in the last will
of the decedent but whose bequest under said last will is
less than otherwise obtainable as a forced share under
applicable probate law;
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"Passive Income" means dividends, capital gains, interest, rents, royalties,
disruptions and other income accrued from property of a
Party and obtained after the Effective Date of this
Agreement. Also includes accrued but unrecognized
appreciation in the value of capital assets classified as
Separate Property. In the case of ownership of interests
in corporations, all dividends therefrom are to be
considered passive. In the case of ownership of interests
in trusts and partnerships which do not operate a
business enterprise, all distributions and income
allocations therefrom to a Party are to be considered
passive. In the case of ownership of interests in trusts,
partnerships, limited liability companies and like
business entities which operate a business enterprise,
all distributions and income allocations therefrom to a
Party are to be considered passive unless a Party
materially participates in the business. Where a Party
materially participates in a business operated by a trust,
partnership or like business entity, all income and
distributions from said entity are to be treated as Earned
Income.
"Separate Property" means all rights and interests in property of any kind,
including contingent interests, owned by each Party on
the Effective Date of this Agreement.
1.2 The headings in this Agreement are for convenience only and shall not affect
its interpretation.
1.3 The Schedules form part of this Agreement and shall have the same force
and effect as if set out in the body of this Agreement.
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1.5 Unless the context otherwise admits words importing one gender shall include
all other genders and words importing the singular shall include the plural and
vice versa.
1.6 Reference to any statutory provisions in this Agreement shall include any
statutory provisions, which amends or replaces it.
2.1 The Effective Date of this Agreement is the date upon which the Parties are
legally married or entered into a civil partnership.
2.2 This Agreement shall take effect only upon the lawful marriage or civil
partnership of the Parties. The Parties intend to enter into a marriage or civil
partnership on <<INSERT DATE>> and this Agreement is conditional upon
the marriage or civil partnership taking place on the date specified or within 3
months of that date.
3. Separate Property
3.1 Any property which is solely owned by either of the Parties before the
Effective Date of this Agreement is considered Separate Property unless
expressly provided in writing and shall subsist and continue as the sole
property of that Party absolutely. Any income or benefit which is derived from
the aforementioned Separate Property shall belong solely to that Party
absolutely.
3.2 Passive Income derived from property of any type shall have the same
character for the purpose of this Agreement as the property from which it is
derived. Thus, Passive Income from Separate Property earned or accruing
after the Effective Date of this Agreement shall be the Separate Property of
the owner of that asset.
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3.3 Except as expressly provided in writing, any property which is acquired by
either Party during the marriage or civil partnership either by way of
inheritance or gift shall be the sole property of that Party absolutely. Therefore
for the purpose of this Agreement Separate property shall also include gifts or
inheritances one Party receives from a third party after the Effective Date of
this Agreement.
3.4 In regard to Retirement Plans and Accounts, the Parties covenant and agree
that all accumulations in, and contributions to, Retirement Plans and Accounts
whether before or during the marriage or civil partnership shall be the
Separate Property of the Party who owns the account or is the plan
beneficiary.
3.5 For the purpose of this Agreement Separate Property shall include:
substitutions and exchanges for such property now in existence and any
proceeds therefrom, and from any income derived from such Separate
Property and any property purchased from the proceeds or income from such
property.
3.6 Each of the Parties shall have the unrestricted right to dispose of such
Separate Property free and clear of any claim that may be made by the other
by reason of their marriage or civil partnership and with the same effect as if
no marriage or civil partnership had been consummated between them. The
Parties hereby agree and elect that all property designated as Separate
Property in this Agreement shall be exempt from any claim.
3.7 Except as otherwise provided herein, each Party waives and releases all
rights, interests in and claims to the Separate Property of the other party
arising under common or statutory law.
4. Joint Property
4.1 Without prejudice to clause 3 above, all property acquired by the Parties
during the marriage or civil partnership and which is procured or acquired
jointly with joint resources and funds shall be considered the jointly owned
property of the Parties.
4.2 Passive Income from jointly owned property earned or accruing after the
Effective Date of this Agreement shall be considered the jointly owned
property of the Parties.
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4.3 Earned Income of the Parties during the marriage or civil partnership shall be
considered the jointly owned property of the Parties.
5.1 Common Living Expenses incurred during the marriage or civil partnership
shall be paid first from the Liquid Assets of the Parties not classified as
Separate Property under this Agreement.
5.2 The Common Living Expenses which cannot be paid from said Liquid Assets
of the Parties are to be paid from the Separate Property of the Parties in the
following percentages: 50% by the First Party and 50% by the Second Party.
6. Gifts
6.1 This Agreement shall not limit the right of either Party to make such transfers
of property to the other as he or she may wish during their respective
lifetimes, or by will, or to acquire property jointly or in any other form of
ownership.
6.2 No term of this Agreement shall preclude either Party from making lifetime
gifts to the other. Any such gift will not be construed as varying the terms of
this Agreement or as evidencing any intention for this Agreement to be so
varied.
7.1 In the event of a separation or divorce, the Parties agree that all Separate
Property shall subsist and continue as the sole property of the relevant party.
Each Party hereby waives, releases and relinquishes any and all rights
whatsoever, whether arising by common or statutory law (present or future) to
the other Party’s Separate Property.
7.2 In the event of separation or divorce, all property acquired after marriage
which is jointly owned shall be subject to division, either by agreement or
judicial determination.
7.3 Each Party hereby waives, releases and relinquishes any and all rights
whatsoever, whether arising by common or statutory law (present or future) to
spousal alimony, maintenance or other allowances incident to divorce or
separation.
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8. Death
8.1 Upon the death of either or both of the Parties, it is agreed that the other Party
shall make no claim against or assert any right to a share in the probate
estate of such deceased Party. The rights and claims waived by this
paragraph include those as an omitted spouse or under the intestate
succession laws. Nothing in this paragraph shall be construed as restricting
the ability of a surviving spouse to be a beneficiary of the deceased spouse as
a named beneficiary under a valid last will executed by said deceased
spouse, nor does this paragraph waive the right of surviving spouse to make a
claim against the estate of deceased spouse as a creditor, a claimant for
breach of contract, a tort claimant, or to dispute the ownership of property also
claimed by the estate.
9. Debts
9.1 Each Party shall pay and be responsible for all debts incurred by the Party
prior to the Effective Date of this Agreement from that Party's Separate
Property. Further, each Party agrees to indemnify the other for any damages
or losses incurred by the other Party related to his or her debts existing prior
to the Effective Date of this Agreement.
11.1 This Agreement, together with the attached Schedules, sets forth the entire
agreement between the Parties with regard to the subject matter hereof. It
supersedes any prior representations which may have been made, whether
orally or in writing. Any subsequent modification or variation of this Agreement
shall be invalid unless it is in writing and signed by both Parties.
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12. Severance
12.3 The Parties agree to attempt to substitute for any invalid or unenforceable
provision a valid and enforceable provision which achieves to the greatest
extent possible the same effect as would have been achieved by the invalid or
unenforceable provision.
13. Miscellaneous
13.1 The Parties agree that each and every provision of this Agreement shall inure
to the benefit of and shall be binding upon the heirs, assigns, personal
representatives, and all successors in the interest of the Parties.
13.2 The Parties warrant that they have entered into this agreement willingly and of
their own volitions, and that they have not been subject to any inducement or
undue influence or pressure.
13.3 Each Party acknowledges that he or she has had an adequate opportunity to
read and consider this Agreement and has obtained Independent Legal
Advice regarding this Agreement prior to its execution.
13.4 Each Party has submitted summary financial information attached hereto as
Schedule A. Each Party acknowledges an opportunity to view said financial
information prior to the execution of this Agreement; however, the signing of
this Agreement does not in any way constitute a waiver of the right of full
disclosure regarding the other Party's financial position.
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14. Governing Law and Jurisdiction
14.2 Any dispute or difference between the Parties arising out of or in accordance
with the terms and effect of this Agreement shall be determined by the
exclusive jurisdiction of the English courts.
IN WITNESS WHEREOF this Agreement has been duly executed the day and year first
before written
SIGNED by
Signature:
In the presence of
Signature:
SIGNED by
Signature:
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In the presence of
Signature:
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SCHEDULE A
Summary Financial Statements of the Parties
DEBTS
INCOME
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