Pre-Nuptials

22nd Nov 2011

LOVE struck couples are running the risk of financial strife unless they set aside romanticism for the practicalities of modern life, experts have warned.

As divorce becomes a matter-of-fact element of 21^st century society, many men and women are marrying and divorcing more than once.

Family law experts at regional firm BHP Law are concerned that without pre-nuptial arrangements, couples could be putting their assets at risk should their relationships break down.

Marriage breakdowns can also impact upon families as they can throw up issues surrounding inheritance.

Head of the family department and Darlington-based partner at BHP Law, Terry Hamer, said: “Pre-nuptial arrangements are hardly a romantic exercise but they are practical at a time when we are all becoming more financially astute about our assets.

Most people can think about this much more rationally at the beginning of a relationship rather than at the start of divorce proceedings when, because of stress and hurt,  rationality tends to go out of the window. It really does take some of  the stress out of it.”

Terry said many people worked hard to build up their assets and often came into second and third marriages with substantial savings and property. These estates may be earmarked for children and pre-nuptials are a way of reducing any conflict that might arise between the parties and their families, he explained.

“Courts look at what is fair and a pre-nuptial agreement will be considered among a host of other factors. For instance, it will not override the general principal that the children will be provided for first, but most pre-nuptial agreements are likely to provide for the reasonable expectations of the parties should the marriage fail.

The courts will examine how the arrangements were made and whether both parties understood what they were agreeing to and were properly advised. It will always come to its decision based on fairness.

But the courts are becoming attuned to pre-nuptials and they are likely to be given much more weight in the future.”

You knew before this!

Where couples are re-marrying in their 40s, 50s and 60s, each party has often built up substantial estates – sometimes from inherited acquisitions themselves – with the presumption that these would eventually go to members of their respective families.

“Pre-nuptial agreements are a real opportunity for people to set out in reasonable circumstances what they would like to happen to their assets in the event of an unfortunate breakdown of their marriage,” he added.

“Everyone associates them with multi-million pound cases. But if you have worked very hard for many years to build up your assets, these are equally precious and the agreement can substantially reduce arguments as to what will be fair. They are a really good working document from which to start.”

Author: Terry Hamer, Partner (TerryH@bhplaw.co.uk)