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Increase in Agreements to Protect Assets in Second Marriages- 11/01/2010
More people are seeking to protect their assets by using legally binding agreements to restrict their spouse’s or partner’s rights to their wealth in the event of a future divorce or separation, according to a leading West Midlands’ matrimonial solicitor.
Anne Thomson, Partner and Head of Family Law at West Midlands’ law firm FBC Manby Bowdler, says that with courts now being much more likely to uphold pre- and post-nuptial agreements, the firm has seen a record number of couples keen to sign.
“The increase in agreements both before and after marriage has also been matched by a rise in the number of co-habitation agreements which we are preparing,” says Miss Thomson, who is based in FBC Manby Bowdler’s Telford office.
“It really is a case of once bitten, twice shy, as those who have gone through a divorce, or have broken up after living together with a long term partner, seek to protect their assets the second time around, often for the sake of any children from the first marriage,” she explains.
According to Miss Thomson, a number of key legal decisions in the past 12 months now mean that there is a much better chance that both pre-nuptial and post-nuptial agreements will be upheld by the courts, provided each party to iy was properly advised and accurately disclosed their assets at the time of the agreement.
She says: “In the key decision earlier this year, the appeal court judges agreed that pre-nuptial agreements should be more widely used.”
The judges stated that pre-nuptial agreements are now ‘not just for the super-rich, but, for example, for mature couples entering into a second marriage’.
According to Miss Thomson, FBC Manby Bowdler is also preparing an increasing number of co-habitation agreements. She believes that this could be a sign that more couples understand that living together does not confer on them the same rights as marriage.
She says: “Although the Government has indicated recently that it may legislate to improve the position of a long term partner to claim from an estate when the person they have lived with for a long time dies, the position on separation remains the same. Therefore, co-habitation agreements remain vital to avoid later disputes, especially over property assets.
“Unlike in a divorce, if a non-married couple split up without any prior agreement, no account is taken by the courts of how long they have been together and what each party brought to the relationship, when it comes to assigning the assets.
“Drawing up a legal agreement, before or after getting married, or before living together is good for a couple. It makes them think much more deeply about all the issues involved in living together, including the care of children, and gives each party the chance to think through a number of different scenarios and agree on the outcomes should they split up,” concludes Miss Thomson.
FBC Manby Bowdler provides specialist advice on all aspects of family and matrimonial law from its five offices in Wolverhampton, Shrewsbury, Telford, Bridgnorth and Willenhall.