Written by Samantha Jago

Solicitor & Mediator at RHW Solicitors

Samantha has a wide range of experience in all family matters including prenuptial agreements, cohabitation agreements, divorce, disputes over jurisdiction, cohabitation disputes, civil partnerships, children matters, injunctions and resolving financial matters arising from the breakdown of a relationship. Samantha also carries out advocacy on behalf of clients and is a qualified mediator.

Samantha is good at her job as she listens to clients, is empathetic but quick to grasp the issues.  Coupled with a sound knowledge of the law, she is focussed on seeking a resolution that enables clients to get on with their lives in the best way possible for them and their children. Karen L. Barham, Barlow Robbins.

Pre and post nuptial agreements (together called ‘nuptial agreements’) are agreements made either before or after marriage, setting out how the parties to a marriage will deal with some or all of their matrimonial assets. They are particularly useful for preserving assets that were acquired before marriage (for example, shareholdings in family companies, or particular family assets and heirlooms), and also for regulating what may occur in the future if one or both parties inherit assets and heirlooms from their own side of the family.

Is The Law Catching Up?

Nuptial agreements are a rapidly developing area of family law. It is a useful example of how society eventually forces the law to adapt and change.

The Past: The Background

Over 20 years or so ago nuptial agreements were not generally enforceable in English law. There were two fundamental problems. Firstly, Judges were not allowed to give effect to agreements that contemplated the possibility of a future divorce, and were therefore void because they might encourage the breakdown of marriage. Secondly, Judges were not allowed to give effect to agreements that might interfere with the Courts’ own powers and way of doing things at a later date.

The Present

Gradually, however, there have been various landmark legal cases which have opened up the ability of the Courts to deal with nuptial agreements, and in a 2010 in a ground-breaking case (Radmacher V Granatino) the Supreme Court said that, amongst other things, provided each person has a full appreciation of the implications of the agreement, then the Court should give effect to those agreements unless it would be unfair. These principles are more or less identical to the principles applied in most divorce financial settlements.

Current Practice

Accordingly, it is possible to make nuptial agreements either before or after the marriage, and provided that they are fair and that they also meet various other conditions and guidelines, they are likely to be enforced by the Court. One difficulty remains, and that is whether the parties have children.

Nuptial agreements are a rapidly developing area of family law.

Clearly, if the parties make a nuptial agreement, then go on to have children together, but the nuptial agreement does not make proper financial provision for those children then the Courts will override the Agreement in order to provide for the children, but that is, and always has been, the Courts’ priority, and in a sense there is nothing new or unusual about the Courts taking such a view (it is probably what we would want the Courts to do!).

Current & Future Guidelines

Combining the current practice and future guidelines, it is recommended that the following are observed:-

Ensure that any agreement that you draw up is contractually valid and enforceable (there are certain legal rules to be followed before a contract becomes legally valid).

Ensure that the agreement is also drawn up in the format of a deed, and is executed as a deed.

Ensure that the agreement contains a statement signed by each party that he or she understands that the agreement will restrict the Courts’ discretion to make financial orders.

Ensure that the agreement is not made during a period of 28 days ending on the day in which the marriage (or civil partnership) is formed.

At the time the agreement is formed each party must have made full written disclosure of all information about their finances to the other.

Ensure that there is an option to review the nuptial agreement at specific “trigger events” such as the birth of a child, purchase of a replacement property or, for example, every 5-10 years to ensure it remains relevant.

At the time the agreement is formed both parties must have received independent legal advice, and a compelling statement to that effect should be contained on the face of the agreement.

The Future of Nuptial Agreements

It is interesting that lawyers have moved to catch up with society’s needs, but what is now needed is for the politicians to move too and to bring a draft bill relating to nuptial agreements into effect. There have been moved towards this but a significant change in legislation is still yet to occur.

However, even before the draft bill comes into effect, do please remember that agreements which follow the guidelines set out above are still likely to be viable and accepted by the Courts today, provided that they also meet the overall objective of being fair.

 

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Unclear about whether a Nuptial Agreement is right for you

As Samantha says above, this is a changing area of law and it would seem sensible to have a chat through with a professional before fixing your decision.

All the solicitor members on our Panel will be able to advise further...

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