How can I protect my assets?

Very few people enter into a committed relationship or marriage thinking that it will end however, in reality a high percentage of relationships breakdown.  Often couples do not know their partner’s true financial position, and this can lead to doubt, concern, and curiosity.  Whilst talking about money can be difficult and uncomfortable it can also be a very smart thing to do, and after the initial awkwardness couples can find common ground and agreement through transparency. 

When you have assets to protect and you are intending to move in with your partner, a Cohabitation Agreement can be very useful in regulating how belongings and assets will be distributed should the relationship breakdown. More and more people are choosing to live together and remain unmarried than ever before and it is worth remembering that unmarried couples have fewer rights than married couples. 

A Pre-nuptial Agreement is a written contract that can be prepared for a couple entering into marriage, defining their financial positions and outlining what each party may receive if the marriage ends. Pre-acquired assets are often a key focus, particularly as second marriages are on the increase.  The Office for National Statistics reports for 2018 that only 59% of marriages were the first marriage for both husband and wife, compared with 90% in 1970.  Statistics for 2019 show the divorce rates for same-sex couples are increasing.

A Pre-nuptial Agreement can look at different events unfolding in the marriage that may alter a party’s financial position such as having children or giving up work.  Whilst such agreements are not cast iron they will be given considerable weight if the parties have each had an opportunity to receive independent legal advice, the agreement is prepared and entered into well in advance of the marriage (at least one month), and there is material financial disclosure of the parties’ finances to one another before entering into the agreement.   

Once a “taboo” subject, Pre-nuptial Agreements are now seen as a useful and a smart step to provide peace of mind and avoid unnecessary litigation in the future.

Please get in touch should you require specialist advice and assistance in this area.

by Elaine Flynn

@ef_familylaw

11.11.2020