4th April, 2018
Ensure you don’t allow your cohabitation, pre or post-nuptial agreement to fade into irrelevance with these key guidelines on when to review.
Previously, pre- and post- nuptial and cohabitation agreements were often seen as a rainstorm over a parade, an indication of lack of trust or love. However, the changes in the property market, average age of marriage and developing case law means that these agreements are now viewed as a sensible way of clarifying expectations and avoiding future disputes.
It is widely reported that young people are struggling to purchase property and establish a presence on the property ladder. Increasingly, parents are releasing capital in order to assist in raising a deposit, in some cases drawing down pension funds or mortgaging property. As this can be at the cost of their future retirement fund, many parents are keen to see their contribution recorded in order to protect those funds in the event of a relationship breakdown.
The age of marriage is also shifting, with an increase in couples entering into their first marriage in their thirties rather than their twenties, and couples re-marrying over the age of 65. With such marriages brings well-established financial structures including inheritance, pension pots and property. Older couples also have the consideration of protecting future inheritance for children from previous marriages, especially where these funds have been generated from a first marriage, or a pension fund built entirely prior to the marriage.
We have observed an increase in clients giving serious consideration to these concerns and entering into cohabitation and pre-/post-nuptial agreements. To ensure the court gives proper consideration to such documents on the breakdown of a relationship, they need to be accurately drafted and legal advice is imperative at the outset, together with evidence that full disclosure has been presented by both parties.
Clients so often take steps to initially protect their assets but then fail to undertake periodical reviews to reflect a change in circumstances. It is recommended:
Without a review, these agreements can be considered out of date or obsolete and the court may be less likely to give them consideration.
We understand it is important to ensure that your position is protected throughout the inevitable changes that life provides. If you would like any further advice in relation to this matter, please contact a member of our Family Team who would be happy to discuss your situation.
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