LEGALLY BINDING PRE-NUPTIAL AGREEMENTS?

There has been much press coverage of the Law Commission’s recent report entitled Matrimonial Property, Needs and Agreements.

The report makes 2 important recommendations.   The first is that “qualifying nuptial agreements” become enforceable contracts. Secondly the Commission has recommended that guidance be produced on the meaning of “financial needs” so that it is clearer to anyone who is going through a divorce or separation what the financial outcome is likely to be.

“This must be very good news for many married couples who are contemplating going through a separation”, commented Judith Fitzpatrick, the Family Law Department Partner at RDC, “the breakdown of a marriage is a very distressing time and the more clarity that can be brought to what the implications financially of the marital breakdown may bring, is to be welcomed.” 

The Commission has recommended that pre-nuptial agreements and post nuptial agreements would become legally binding provided that certain specific requirements are met.  This is a big step forward.   This proposal follows 3 years of consultation.  

Pre-nuptial agreements have become more popular over recent years in particular when parties have gone through a second or third marriage, yet their legal status has been unclear.  This latest development will give legal status to pre-nuptial agreements.   It will certainly make a couple’s situation upon separation or divorce much clearer and also reduce uncertainty.  

It needs to be borne in mind that the Court will still be able to review agreements when dealing with the parties financial needs.   In particular those of any children will be extremely relevant.    It will be even more crucial that people seek legal advice when contemplating entering into a pre-nuptial agreement to ensure that it is going to be legally binding.   Certainly any measure which enables a couple to separate with a degree of certainty as to the financial implications of their decision will hopefully reduce anxiety at what can be an extremely stressful time.  

If you want any further information about pre-nuptial agreements or any other Family Law issue, please contact Judith Fitzpatrick on 01274 723858 or email her at judith@rdcsolicitors.co.uk