The Law Commission has recently published their report ‘Matrimonial Property Needs and Agreements’. The report has recommended a set of measures to make it easier for couples to manage their financial affairs on divorce or at the end of a civil partnership. One of these is to allow ‘qualifying nuptial agreements’. This would enable couples to decide how their assets should be shared if they separate.
The Courts in England and Wales can make financial orders, including capital payments and ongoing maintenance when married couples or civil partners separate. A vital factor of those orders is to ensure that the financial needs of both partners are met and are fair. Under the current law, couples can make pre and post-nuptial agreements. The courts may follow these agreements but they are not binding and the parties cannot be certain they will be upheld, which can make the outcome unpredictable
The report, includes a draft Bill that, if implemented, would bring qualifying nuptial agreements into effect. It would also enable married couples and civil partners to make a binding agreement(Pre-nuptial agreements) about how their property or finances should be shared if their relationship breaks down.
The agreements would be enforceable as contracts but would apply only after both partner’s financial needs, and any financial responsibilities towards children, have been met. And they would be binding only if, at the time of signing, both parties had disclosed material information about their financial situation and both received legal advice.
This long-overdue decision to make pre-nuptial agreements legally binding under the right circumstances will provide couples with more certainty over the whole process.
For further information or assistance on pre-nuptial agreements contact Ringrose Law Solicitors or click here for further details.