Law Commission Publishes Consultation Paper on Future of Pre-Nuptial Agreements
The Law Commission has published a consultation paper to try to answer the question we posed on 8th November 2010 namely ‘Are Pre-Nuptial Agreements Legally Binding?’ The consultation period closes on 11th April 2011. At present the law does not allow couples to prevent each other from asking the Courts to decide how their property should be shared. The Courts have to decide on a case by case basis how much weight to give to Pre-Nuptial Agreements which can lead to uncertainty and expensive litigation.
The consultation paper suggests a number of options for changing the law relating to Pre-Nuptial, Post-Nuptial and Separation Agreements.
Any change in the law will require an Act of Parliament which is likely to require agreements to be in writing, after each party has taken advice from a Solicitor and on the basis that both parties must be completely frank about their financial situation. There may be limitations on the validity of agreements so that it may become unenforceable after a certain period of marriage. The birth of a child might also mean the agreement could not be enforced so the Courts would be able to deal with assets without being bound by the agreement.
Many couples are now having such agreements drawn up before they marry to try and protect their wealth from the Courts powers to share assets and income in a divorce. For information on how this may affect you, why not arrange an appointment with our Jane Gale.