The recent engagement of Taylor Swift and Travis Kelce has everyone talking. While the romance and optimism for their future together is captivating, their engagement has also sparked global interest in the terms of their proposed marriage - will they sign a pre-nuptial agreement? Should they?
With Taylor’s net worth being estimated at around £1.3 billion and Kelce’s at around £71 million, family law solicitors will answer this question with a resounding, yes! The Swift/Kelce engagement is a case study in asset protection, wealth disparity and reputational protection. Pre-nuptial agreements are not just about money – it can be about autonomy, legacy and the ability to leave a relationship without financial or reputational ruin. While the implications of not having a pre-nuptial agreement are extreme in their case, the principles as to why pre-nuptial agreements are important are equally applicable to couples across Scotland.
While very few Scottish clients will ever face the financial or reputational complexities of the Swift/Kelce relationship, pre-nuptial agreements are increasingly relevant for a broad demographic, for example; for business owners who may wish to protect their business interests; for partners with significant disparity either in terms of their wealth or debt; for property owners who wish to protect pre-marital assets; or for individuals who may be entering second marriages wishing to protect their existing assets for the benefit of their children from their previous relationship.
Under Scottish law, getting married or entering a civil partnership imposes significant legal consequences upon individuals. The law defines matrimonial property and directs how this should be divided upon separation. The financial outcome of a divorce can be unpredictable as several factors are considered in achieving a fair outcome. A carefully constructed pre-nuptial agreement can provide certainty. It allows parties to:
- Protect pre-marital assets
While assets accrued before marriage are generally excluded from being considered matrimonial property, if changes are made to the nature of the asset during the marriage, it may be converted into matrimonial property. To avoid this, a pre-nuptial agreement can state which assets will never be considered matrimonial property regardless of changes. This allows the asset owner to dispose of or invest it as they wish. In the Swift/Kelce case, this could extend to protecting Taylor’s intellectual property rights, her having fought so fiercely to reclaim ownership of her music catalogue.
- Protect wealth inherited or gifted during the marriage
Assets gifted by third parties or inherited during the marriage are excluded from matrimonial property. However, if the gifted or inherited assets are changed in nature during the marriage, then they could be converted into matrimonial property. A pre-nuptial agreement can expressly state that this will not happen.
- Protect business interests
The agreement can specify how business interests will be dealt with on separation, for example how share ownership or profits are treated.
- Protect against debts
If one person enters the marriage with significant debts, a pre-nuptial agreement can ensure the other party is not held responsible for those debts if they separate.
- Protect future income
A pre-nuptial agreement can specify how future income is to be treated upon separation, including bonuses, interest and rental income
- Confidentiality
Pre-Nuptial agreements can be more than a financial tool. In some cases, they can also provide emotional safeguards, ensuring confidentiality by prohibiting post-divorce memoirs or anything which may cause reputational harm. While not relevant for everyone, this will certainly be something that Swift/Kelce’s respective legal teams will be paying close attention to.
Pre-Nuptial agreements are legally binding in Scotland, provided certain criteria are met. Scottish courts will generally uphold such an agreement if it was entered into freely and without duress; both parties had full financial disclosure at the time of signing, each party had access to independent legal advice; and the terms of the agreement are fair and reasonable at the time of enforcement. By entering a pre-nuptial agreement, individuals can relax, knowing their assets are protected, with some certainty about their financial position after separation. Further, reaching agreement while both parties remain on good terms could prevent lengthy disputes or costly litigation later.
The Swift/Kelce engagement offers a cultural moment to change the view on pre-nuptial agreements. Once viewed as cynical, transactional or lacking in romance; instead such agreements can be seen as practical, sensible and empowering. Whether you are a global superstar or a Glasgow entrepreneur, pre-nuptial agreements can be a vital tool for modern relationships. Have the difficult discussions now to avoid any “bad blood” in the future.
If you’re considering marriage or a civil partnership and want to protect your assets, our experienced family law solicitors can guide you through your options. Get in touch today for confidential advice on pre-nuptial agreements tailored to your circumstances.
