Pre- and post-nuptials and the Bank of Mum and Dad

If you are considering gifting property, land or money to your family, or if you are about to receive a gift, then you should read this article first.

Agreements between couples, regulating how they own and share assets, are becoming far more common. This is because we are becoming more and more aware that if you did separate, without these arrangements, it is likely to be more difficult and therefore most costly to resolve.

You should therefore think about asking your children to put in place an agreement that any gifted assets should stay with them, and not be divided and shared with their partner, if they were to separate.

There has historically been a stigma attached to Pre-Nuptial or Post- Nuptial Agreements (known as Cohabitation Agreements if there is no intended marriage) that they are only for the rich and famous, but this has faded as people realise the benefits of long term financial planning. They should be viewed in the same way as home insurance: you hope you won’t need it, but you have it ready just in case.

These agreements can be drawn up quickly by a family solicitor and should not be contentious. They should be written in plain English so everyone knows where they stand. They can even be prepared in a collaborative setting, with your partner and their lawyer (if they instruct one) in the same room , so that they are fully involved in the process.     

Harrowells family team can offer a fixed fee for preparing such agreements and they usually take only a matter of weeks to complete, from start to finish. Link to more information about how we can help with cohabitation agreements or pre-nuptial or post-nuptial agreements.