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Divorce To have and to have not

by Samantha Downes (Journalist) at 10:02 am on 3 November 2008 (424 views)

Divorce To have and to have not

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Category : Health and Family

If Gone With the Wind had been set in the noughties, our modern day Rhett Butler might have been lying a teensy-weensy bit if told Scarlett O'Hara he didn't give a damn. Instead he might have been bitterly regretting not having signed a pre nup before passion had got the better of him

 

To pre nup or not?

Pre-nuptial agreements, or 'pre-nups', as they are often dubbed, are contracts drawn up between couples before they marry or embark on a civil partnership and set out what would happen to their finances and property in the case of a split. They are legally recognised in Australia, New Zealand, Canada and Scotland as well as courts in the United States.

 

Making it legal

Until recently, most English courts would only take a pre-nup 'into consideration' when carving up the martial assets during a divorce. 

But this autumn the Law Commission, a watchdog charged by the government with looking at legal reform, is looking at giving them legal status. If the proposals get the eventual go ahead, and they would have to go through parliament first, pre-nups could become legally recognised and binding agreements by 2012.

 

Why have one?

The Law Commission believes giving legal status to pre-nups will encourage more people to marry or enter into civil partnerships. 

However, many lawyers claim that among wealthy couples pre-nups are already de rigueur.

One lawyer has noticed a "huge increase" in the number of couples opting for pre-nups in the last six months. Something she believes has been prompted by several high profile divorce cases where a pre nup was in place and ended up being used by the divorce court when reaching its final settlement.  She cites Susan Sangster's unsuccessful attempt to overturn the pre-nup made between her and husband number four Stuart Crossley this year.

The inconsistences in how the courts treat the division of financial assets 

during a divorce has also made couples more amenable to pre-nups. 

 

Rule for pre nups

You don't have to be wealthy. More and more ordinary middle class couples are opting for one.  In fact if you have been married before and have other assets tied up they can be extremely useful.

Pre nups can be costly. The more complex your financial affairs are the longer it will take a lawyer to draw up a pre nup. But most people feel the amount paid is worth a couple of thousand to draw up an agreement can save someone tens of thousands later on.

Take independent advice. For a pre nup to be considered by a court as part of any divorce hearing both parties should have taken independent legal advice, otherwise someone could have been viewed as being under duress when signing it.

Update it. And once a pre nup has been drawn up it will need to be updated. These so-called post-nuptial agreements are also being considered in the Law Commission's plans. 

You don't have to be married, but it helps. Couples who are living together but not married, or who have not entered into a civil partnership can make a similar agreement a cohabitation agreement.

Your best bet is to protect your interests is through a will. This is a legal valid document that could save a lot of heartache should one of you die. This is especially important if one of you has children from another relationship or if you have been married before. 

 

Contact an advisor about life cover to make sure essentials such as mortgage and healthcare are covered.

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