It has been reported today that Melania Trump renegotiated her pre-nuptial agreement (prenup) with former US President Donald Trump during the early stages of his presidency — and that the agreement has again been amended to increase the value of a trust fund for her son, Barron Trump.
Here, Amy Harris — our Legal Director and a specialist in pre- and post-nuptial agreements — discusses why someone may want to enter into a prenup and why it may be important to regularly review or renegotiate such agreements once they have been implemented.
Trump’s ongoing legal troubles
This is said to be the "at least the third time” that Melania Trump has renegotiated her agreement, which may take into account the former President’s ongoing legal troubles and costs, as well as his potential second run at the presidency.
The updated agreement is said to secure a specific minimum amount of money for their son, Barron Trump, who turns 18 in March 2024.
Prenups — legally binding?
A prenup is an agreement that is entered into by a couple prior to their wedding or civil partnership. It sets out what the financial settlement should be in the event of a divorce or the dissolution of a civil partnership.
In England and Wales, prenups aren’t legally binding upon the Family Court. However, they are legally binding in many countries around the world — including the US.
Usually, a prenup will be upheld if:
- It’s fair and reasonable.
- The couple have taken legal advice before entering into the agreement.
- No duress or pressure has been put on either party to enter into the agreement.
- Appropriate time has been given for the couple to reflect on the terms of the agreement.
Prenup advantages
For wealthy couples (like the Trumps), it can be highly advantageous to enter into a prenup to provide certainty in the event of a divorce. Prenups can also mitigate the need for litigation or disagreements upon separation.
It’s generally far easier to negotiate a financial settlement while you’re happily engaged or married than during a divorce.
Wise to revise
Prenups can be reviewed or revised following marriage. Some agreements might be reviewed after a significant event, such as redundancy, bankruptcy or the birth of a child.
By reviewing the agreement, you’re ensuring that the terms are still fair and reasonable. It’s essential that any marital agreement meets the needs of any children and their main carer.
Once a couple are married, the revised agreement will then be known as a post-nuptial agreement (or postnup).
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