The financial consequences of separation or divorce can be not only stressful, but hugely expensive.
If you and your partner cannot agree how to divide your money and property, then ultimately a Judge will decide for you.
Outcomes are notoriously uncertain because there is no “formula” by which your money and property will be divided. There are no rules to govern division but simply a series of guidelines. The ultimate test is what the Judge considers “fair and reasonable” in the particular circumstances of your case but different judges take different views, and so the whole experience carries a substantial risk.
Wouldn’t it make sense, therefore, to have some agreement before you and your partner marry or start your relationship, about what should happen if you split up?
You can make an agreement before the marriage, known as a “pre-nuptial agreement”, or after the marriage (a “post-marital agreement”) setting out what you both want to happen if you should split up. Such agreements can cover the division of savings, pensions, household contents and presents, whether acquired or belonging to one of you before the relationship, or acquired since.
This may be particularly important for those bringing substantial wealth into a new relationship, or who have children from a previous relationship whose future inheritance they would wish to protect.
Of course such agreements are not for everyone; they may not be very romantic but they are a sensible choice, giving you security and peace of mind if things don’t work out as planned.
To download our Guide to Pre-nups, click here.