Pre-relationship Agreements
When you are about to move in with your partner or get married, it may seem cynical and unromantic to consider the financial consequences if things go wrong, but it is probably statistically sensible. More importantly, it can help to avoid unexpected and unwelcome consequences and the expensive costs of litigation.
- Cohabitation agreements
There is no such thing as a "common law" husband or wife. There is no right to financial support when the relationship ends, no matter how long the parties have been living together. Likewise there is no claim against the property or assets owned by the other party, although the situation with regard to the home can be extremely complex if the property is in joint names or if it is owned by one party and the other has made contributions to it.
The most important issue for cohabiting couples to address is the ownership of the house and this can be dealt with in appropriate cases by a declaration of trust.
We can also prepare a cohabitation agreement to cover wider financial issues such as ownership of other assets, who pays for what and what should happen if the relationship ends.
- Pre-marital agreements
A pre-nuptial agreement is a contract between parties about to get married, dealing with the consequences if things go wrong. Such agreements are not totally binding, and on divorce the court retains a residual discretion to determine a fair outcome. However recent case law has treated them as more and more significant. It is now fair to say that there is a presumption that a pre-nuptial agreement will prevail.
It is not just the very rich who should be entering into pre-nuptial agreements. They also need to be considered for example where the marriage is a second marriage and the parties wish to preserve their pre-marriage assets for children from an earlier relationship, or where the assets come primarily from one side of the family and/or from a family business.
- Post-marital agreements
A post-martial agreement can be an important tool in the wealth protection toolbox. It is a contract between parties during a marriage and, while not totally binding, is likely to be upheld on a subsequent divorce unless to do so would cause hardship. Such an agreement might be useful if there is a change in circumstances in a marriage such as receipt of a large inheritance or a business start up. We can provide you with detailed specialist advice tailored to your specific needs.
