14th December 2016
The Family Law Team guided an engaged couple through the process of creating a pre-nuptial agreement to the satisfaction of both parties.
A couple with a notable inequality in financial health required a pre-nuptial agreement ahead of their marriage. Referred to Thrings via a family member, our client and his partner sought clear terms to preserve their financial positions and agree a fair settlement should their marriage break down.
In particular, our client had established a business and accrued real estate equity and pension assets prior to his relationship, and wanted to protect these in the event of a divorce.
During initial discussions, we made clear that pre-nuptial agreements are not legally binding. In order for an agreement to be upheld by the court during divorce proceedings, it must be considered fair to both parties.
Drawing on our experience, we protected our client’s interests by balancing his objectives with the element of financial sharing required by the court. After assessing his partner’s financial position prior to their relationship, we advised our client that the agreement would need to return his partner to this position, were they to separate.
We then devised a meticulous agreement that provided his partner with the financial security needed to support his transition following a breakup. This included an initial lump sum for a rental property deposit and income for 12 months – increased according to the length of the relationship and his partner’s level of financial dependency.
We also involved our private client and tax teams to assist the couple in preparing wills and reviewing the tax implications of their financial arrangements.
Based on our long-standing experience, we created a fair agreement to the satisfaction of both parties, that ensured our client’s business, pension assets and real estate equity were protected. We also provided clarity on his maximum liability and documented evidence that both parties considered the agreement to be fair at the time of its creation.