Life planning: the positive power of a pre-nuptial agreement

The importance of financial planning is well established – so why not? pro-actively plan your married life?

Pre-nuptial agreements are not just the preserve of the super wealthy.? A good pre-nup - and the discussions that inform this - can benefit many marriages.? ?

Discussions often start with two simple but key decisions: where will the couple live and how will they fund their life together? From here we consider associated issues that arise in different families: are there family or pre-owned assets they wish to keep separate, or share unequally? Will they share future income? How might a dual-career couple navigate childcare? Whose career might be compromised? Will a future home or homes be owned jointly or separately? Is there any possibility of moving abroad?? What of inherited assets and elderly relatives?

?Many questions can only be considered in the abstract but identifying any points of difference at the outset, and agreeing a possible way forward, might save those differences later destroying a marriage and should certainly help prevent conflict in the event of divorce.?? ?A good pre-nup will provide flexibility and allow for review as the marriage progresses whilst maintaining an agreed framework to guide the decision-making process.

We can help our clients to raise the possibility of a pre-nup with their partner in a sensitive way and can certainly re-assure them that most couples find the process constructive and helpful. It is often parents that propose pre-nuptial agreements to their newly engaged child, or a trusted IFA, accountant or friend.? That can provide a starting point for the initial conversation with their partner.?

Pre-nups, like any contract, need to be produced carefully to be effective.? The court retains the power to deviate from an agreement where necessary to cater for the reasonable needs of the family – considered when the agreement is relied on, not when it was made.? Whilst it is impossible to know with certainty what the future will bring an experienced family lawyer will help a couple identify and consider key milestones and suggest ways in which they can be managed - mindful always of the court’s view of fairness.?

To discuss your own circumstances, contact Susie Barter now.

The information contained in this article is general guidance only. The application and impact of laws can vary widely depending on the specific facts involved. The information in this article is provided with the understanding that the authors and presenters are not giving legal, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional legal, tax or other competent advisers. Before making any decision or taking any action, you should consult a Child & Child professional.

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