Asset & Wealth Protection Solicitors | Coventry & Warwickshire

Pre-Nuptial Agreements are not just for the famous and wealthy. It is increasingly common these days for family members to provide financial assistance to the junior members of the family – whether it be a parent to child, aunt/uncle, grandparents or other. Whilst it may be an unspoken rule that any moneys gifted should be retained by the person who was the intended recipient only, divorce law in England & Wales does not operate like that. Instead, any gifts made could be considered and included as part of the overall pot available for division.

In order to protect contributions from family members, future inheritance and assets accrued pre-marriage, a Pre-Nuptial Agreement is essential.

Pre-Nuptial Agreements provide clarity to both parties, decrease future conflict in the event of a marriage breakdown and saves money, stress and anxiety. Pre-Nuptial Agreements also offer flexibility as they can be varied at any time, by agreement, to reflect a change in circumstances.

In order to have a valid Pre-Nuptial Agreement, parties should:

1. Enter into the Agreement no less than 28 days prior to the date of their wedding (but within the preceding 12 month period);
2. Exchange full financial disclosure before entering into the Agreement;
3. Ensure that neither party is placed under duress to enter into the Agreement; and
4. Both obtain independent legal advice.

There can be occasions when, for whatever reason, there is insufficient time to prepare and enter into a Pre-Nuptial Agreement. In such circumstances, it is still possible to protect your assets and provide clarity to each other by entering into a Post-Nuptial Agreement.

Similar to the requirements for a Pre-Nuptial Agreement, the parties should:

1. Exchange full financial disclosure before entering into the Agreement;
2. Ensure that neither party is placed under duress to enter into the Agreement; and
3. Both obtain independent legal advice

Deciding to take the next step in a relationship by moving in together is an exciting time. As you look to the future together, it is important to set out your expectations of one another in a Living Together (Cohabitation) Agreement.

Whilst such an Agreement is not designed to dictate how either of you live your lives, it is designed to set out arrangements for your respective finances, property and children in the event of a relationship breakdown or death. Having such an Agreement in place avoids the risk of awkward conversations/unnecessary conflict in the future and offers a peace of mind to both parties.

Businesses can be complicated assets. Whilst there are various different models of business – limited company, partnership, limited liability partnership or sole trader, if you/your spouse has a beneficial interest in the same then it will be taken into consideration as part of any overall financial settlement.

It is common for any business assets to be subject to a formal valuation. This is usually carried out by an independent expert. When establishing the value of a business, we will need to consider any assets held by the business, the business income and trading patterns. Depending on how the business is held, we will also need to consider how the party’s share/interest in the business could be realised or offset together with the most appropriate, tax efficient method of doing so.

If you are concerned that your spouse may be trying to hide and/or dissipate assets, then speak to one of our specialist advisors about obtaining a Freezing Order.

Navigating through a separation can be difficult enough without the added stress of trying to establish all the assets. If you are concerned that there may be hidden assets in your case, our specialist advisors work closely with Forensic Accountants and Tracing Agents to ensure that you achieve a fair settlement based on the real value of everything available.

A Freezing Order is a type of injunction granted on a temporary basis to stop an asset from being sold/transferred/dissipated. Freezing Orders can be applied against a variety of assets including land, property, savings, vehicles, arts, jewellery, antiques and future anticipated funds (such as pending inheritance or an award for damages).