Considering Prenups: Divorce Attorney VANESSA LLOYD PLATT Provides Insights on Safeguarding Assets at Marriage
No one wants a painful, costly divorce, and that's where prenups come in. These signed agreements, made before tying the knot, specify how assets will be divided if things go south. Despite what you might think, prenups aren't just for the rich – they're used to protect assets in modest cases too.
With parents gifting money to help kids climbing onto the property ladder, it's essential to prevent that cash from ending up in an ex-spouse's pockets. But approaching the topic tactfully is a must.
Dads tend to view prenups as common sense for protecting family assets, while moms often find the conversation awkward and unwelcome. One client, Fiona, exploded when her husband suggested their daughter get a prenup. "It's so unromantic," she protested, forgetting about the long-term financial impacts of divorce.
Fast-forward three years, and Emily's husband left her for his colleague. They lost half the house because they didn't have a prenup. Fiona's husband never stops reminding her of that.
In the UK, prenups became more binding after a landmark legal case in 2010,Radmacher v Granatino. The case emphasized that parties should be free to decide their financial future in the event of a divorce. The agreement must be fair, consensual, and legal advice should be sought.
Couples marrying later in life often opt for prenups to protect their assets, like share portfolios and properties. A typical prenup outlines what each person brings to the marriage, helping to separate non-matrimonial assets from those acquired during the marriage. However, the agreement must be signed well before the wedding for it to be valid.
It’s vital to engage in open discussions about finances, values, and expectations early in a relationship. Some may view a prenup as planning for failure, but it can provide clarity, reducing the emotional toll of a divorce. Remember, a prenup isn't about distrust – it's about ensuring both parties enter the marriage with clarity and understanding.
If your child resists the idea of a prenup, work to address their concerns and help them understand the benefits. A neutral third party, such as a therapist or lawyer, can assist in these conversations. Above all, have Frank discussions without judgment or pushiness to ensure a happy, secure future for your child and their partner.
- To prevent a parent's financial gift from being split during a divorce, it's crucial to discuss prenuptial agreements tactfully with the receiving child.
- A prenup can be beneficial for couples, especially those with substantial assets like properties and share portfolios, as it specifies how those assets will be handled in case of a divorce.
- In the UK, financial advice is encouraged for couples entering into a prenuptial agreement to ensure the agreement is fair, consensual, and legally binding.
