Pre-Nuptial Agreements
When Love is in the air, feet should be firmly on the ground!
With all of the recent media coverage, it is difficult to ignore the recent announcements on ‘Pre-Nups’.
The Law Commission (the official body responsible for recommending updates to the Law in England and Wales) is proposing changes that would allow couples to enter legally binding agreements to protect assets that they acquired before marriage, in the event of a divorce.
Traditionally in the UK, the idea that couples and civil partners (other than celebrities and the mega-rich!) should discuss how to protect their individual assets was almost taboo. However, a demographic shift towards marrying later in life and a significant increase in second marriages has led to a desire for couples to ‘ring-fence’ their financial assets in the unfortunate event of a divorce.
The current law allows couples to make a Pre-Nuptial agreement, but the Court is not bound to uphold it. However, following a landmark case in 2010, the Court is more likely to be persuaded to uphold such an agreement if:
(a) each party had the benefit of legal advice;
(b) there was full disclosure about the assets;
(c) the agreement was entered into willingly and at least 28 days prior to the ceremony; and
(d) it would be unfair not to uphold it.
It is anticipated that the new proposals from the Law Commission will provide certainty for couples considering marriage and make it easier to manage their finances in the event of a divorce. It should certainly provide a backdrop which will make practical discussions about finances and property ahead of a wedding more acceptable without the traditional accusations about being unromantic.
However, given that it is unlikely that the new proposals will become law until after the next election in 2015, it is imperative that anyone considering a Pre-Nuptial Agreement seeks legal advice at the earliest opportunity.
If you are considering marriage or civil partnership and wish to find out about Pre-Nuptial Agreements please contact Ian Lloyd or Patricia Wyeth on 0208 423 6666 / 1616
With all of the recent media coverage, it is difficult to ignore the recent announcements on ‘Pre-Nups’.
The Law Commission (the official body responsible for recommending updates to the Law in England and Wales) is proposing changes that would allow couples to enter legally binding agreements to protect assets that they acquired before marriage, in the event of a divorce.
Traditionally in the UK, the idea that couples and civil partners (other than celebrities and the mega-rich!) should discuss how to protect their individual assets was almost taboo. However, a demographic shift towards marrying later in life and a significant increase in second marriages has led to a desire for couples to ‘ring-fence’ their financial assets in the unfortunate event of a divorce.
The current law allows couples to make a Pre-Nuptial agreement, but the Court is not bound to uphold it. However, following a landmark case in 2010, the Court is more likely to be persuaded to uphold such an agreement if:
(a) each party had the benefit of legal advice;
(b) there was full disclosure about the assets;
(c) the agreement was entered into willingly and at least 28 days prior to the ceremony; and
(d) it would be unfair not to uphold it.
It is anticipated that the new proposals from the Law Commission will provide certainty for couples considering marriage and make it easier to manage their finances in the event of a divorce. It should certainly provide a backdrop which will make practical discussions about finances and property ahead of a wedding more acceptable without the traditional accusations about being unromantic.
However, given that it is unlikely that the new proposals will become law until after the next election in 2015, it is imperative that anyone considering a Pre-Nuptial Agreement seeks legal advice at the earliest opportunity.
If you are considering marriage or civil partnership and wish to find out about Pre-Nuptial Agreements please contact Ian Lloyd or Patricia Wyeth on 0208 423 6666 / 1616