Dealing with finances, in the event of divorce, can be very difficult, involving emotions as well as finances. We find that clients are often concerned about the risk that assets they give to the next generation will be lost in whole or in part, as the divorce proceedings progress. A new report from the Law Commission is recommending a change in legislation so that, after the financial needs of the both parties have been met, a pre-nuptial agreement would be binding on both parties and so would protect any surplus capital. Care would need to be taken to ensure that
· Each party fully discloses all material information about their financial situation (and the agreement will be invalidated if it turns out that there has been fraudulent misrepresentation or one party has unduly influenced the other)
· It must be made more than 28 days in advance of the wedding or civil partnership
· It must be made by formal deed
· Each party must have taken legal advice
The report will be considered by the Government, and if they decide to follow the recommendation, it will be subject to the normal parliamentary procedures, before it becomes law. Of course, we would always recommend working with a specialist matrimonial lawyer for a full understanding of this developing area of pre-nuptial planning. If you would like our help in finding a specialist lawyer, please contact us.