The Law Commission report into matrimonial property, needs and agreements was published on 27 February 2014.
Although its recommendations still have to be debated and are unlikely to become law this side of 2015, they contain some useful guidance for those considering pre and post-nuptial agreements – that is agreements which seek to set out how a couple’s income and assets are divided on divorce.
The intention is to make such agreements binding save and to the extent that they do not provide for either spouse’s financial needs. It is explicitly stated that such agreements are a fair way of protecting inherited wealth as well as business assets and other assets brought to the marriage.
The recommendations are undoubtedly a sign of things to come, and those who are considering marriage, as well as those who are already married and wish to protect assets are well advised to consider pre and post- nuptial agreements with their advisors. Although these agreements are currently still the subject of court approval, when the legislation is amended, an agreement entered into now is likely to afford significant protection.
For further information on this issue please contact our Divorce & Family team.