Will my overseas pre-nup be valid if I divorce in the UK?

I’m relocating to the UK from the US with my family — I’m British and my wife is American. We signed a pre-nup in California, but will it be upheld in the UK should our relationship break down?

Kirsty Morris, partner at Burgess Mee, says if you were living in England or Wales, the courts would take into account your Californian nuptial agreement and it might carry significant weight, but it is not automatically binding. 

For the past 15 years, since the Supreme Court decision in Radmacher vs Granatino, the English courts have followed pre- and postnuptial agreements, provided they are properly entered into and certain key conditions are met. The agreement is one of the factors, and sometimes the main factor, a court will consider when exercising its wide discretion to divide assets between spouses on divorce. 

Unlike in other countries, the English courts retain the ability to make financial orders that depart from the terms of the nuptial agreement if they feel that the children of the family or one party’s needs would not be met by the outcome of the agreement or if it would not be “fair” to uphold the agreement in full. A court may order additional provisions such as spousal maintenance or pension shares. 

This means that while people have the autonomy to agree the financial outcome they want to apply if they were to divorce, they cannot completely remove the possibility that their spouse could challenge the agreement, or a court could scrutinise the outcome. 

In your case, the court will consider whether certain conditions were met. You and your spouse must have entered the agreement freely and without external pressure. There must have been no duress, fraud or misrepresentation and neither of you should have exploited your dominant position to secure an unfair advantage. Both of you must also have had a full appreciation of the agreement’s implications. This last condition usually requires that you had information about one another’s finances (referred to as “financial disclosure”, typically a schedule appended to the agreement itself) and independent legal advice about the consequences of signing the agreement. 

If the agreement is challenged, the English courts may take into account your backgrounds, professions and individual circumstances. These may include whether you were used to looking at legal documents, whether the agreement was written in your native language and when you first received the draft agreement. Your emotional state, age, maturity and previous experience of long-term relationships may also be relevant when considering whether the agreement was freely entered into.

If you intend to be bound by the terms of the pre-nup, you should ask a family lawyer in England and Wales to review the agreement. Provided it is fair, properly executed and complies with English legal principles, it is likely to be persuasive to an English court and the terms respected. 

My wife and I are approaching retirement and debating whether to downsize our home or rent out our property and move. Which option might make the most financial sense in the current housing market?

Daniel Austin, chief executive and co-founder at ASK Partners, says choosing between downsizing or renting out your current home at this stage in your lives is both a financial and lifestyle decision. Each route has its pros and cons, and the right choice depends on your circumstances, retirement goals, and long-term preferences.

Downsizing can unlock significant equity, offering a lump sum to support your retirement. According to Savills, homeowners in England and Wales could release an average of £305,090 by moving from a four-bedroom to a two-bedroom property. Spread over a 20-year retirement, that equates to roughly £1,218 a month. Beyond the upfront capital, smaller homes typically mean lower utility bills, maintenance costs and council tax. However, it’s important to factor in transaction costs such as estate agent fees, conveyancing, surveys, moving expenses and notably, stamp duty. For homes valued above £250,000, stamp duty is 5 per cent on the portion between £250,001 and £925,000, which can be a substantial outlay.

Renting out your current home, on the other hand, can generate income while preserving your asset’s long-term value. Rental income can help bridge retirement expenses, and by retaining ownership, you could benefit from any future rise in property value. That said, becoming a landlord brings obligations — managing tenants, maintaining the property, and staying compliant with legal regulations. Rental income is also taxable, and there may be occasional void periods without tenants, affecting cash flow.

If you choose to rent out your property and rent elsewhere, you gain flexibility and reduce maintenance responsibilities, but you forgo the equity-building benefits of home ownership. You’ll also need to account for potential rent hikes and a lack of long-term security, depending on your tenancy.

If you’re looking to invest in property without owning bricks and mortar, there are several alternatives worth considering. For example, these could include real estate investment trusts (REITs), which are listed companies that own and manage income-generating properties such as commercial buildings or student housing; and property funds that pool investor capital to invest in a diversified portfolio of real estate assets.

You can also invest in real estate debt, lending capital to property projects. Once the preserve of institutions, these options are now increasingly accessible to individual investors seeking greater flexibility, tax efficiency, and control. This option also provides a regular income stream in the form of interest payments.

When weighing your options, start with your financial goals: do you need a lump sum now, or would a consistent rental income better serve your retirement needs? Then, consider lifestyle: would you prefer the simplicity and lower costs of a smaller home, or the freedom that renting might provide? The state of the local property market should also influence your decision. Research current property values and rental demand in your area to gauge potential returns. Emotional factors matter too — your attachment to your home and how a move might affect your wellbeing are key parts of the equation.

The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect result arising from any reliance placed on replies, including any loss, and exclude liability to the full extent.

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