Love may conquer all, but sometimes life gets messy: especially when it comes to finances, children and, even our furry family members. For those going for the long haul, whether married or not, being proactive from the start can save a lot of heartache down the line.
And while the idea of discussing pre-nups, cohabitation agreements, or even so-called “pet-nups” might seem unromantic, these can actually be a powerful tool for setting the course and navigating long-term partnerships and avoiding future complications.
These agreements can be particularly important if one partner comes into the relationship with significantly more financial resources than the other, or if one has debts. It can also set out property ownership and financial responsibility or help to protect inheritance rights where there are children from previous relationships.
Planning for happily ever after
For couples getting married in England and Wales, a pre-nuptial agreement allows you to establish clear financial arrangements for what would happen in the event of a divorce. This can include pre-existing assets like property, inheritances, or business ownership, but can also extend to future income, savings, and how debts will be handled.
Although prenups are not automatically legally binding in England and Wales, they will be upheld by a court so long as they meet the qualifying criteria set out in a landmark judgement by the Supreme Court and further reviewed by the Law Commission. These include that the agreement must have been freely entered into, that independent legal advice was given to each partner before signing and that children should not be disadvantaged and provided the agreement is finalised no less than 4 weeks before the marriage date.
Building a shared life
For those who choose not to marry, a cohabitation agreement is crucial if you’re co-owning property or planning to live together long-term. It can set out the financial contributions each of you will make towards shared bills and mortgage payments, responsibilities for maintenance, and what happens to any property if your relationship dissolves, or if one partner wants to sell. If only one of you owns the property, the agreement can also make it clear whether it’s intended for the other partner to earn any right to a share or not, for example if they contribute to the mortgage payments.
These agreements can go beyond finances to address practicalities like division of household chores, desired living arrangements in the future, and even how to handle potential differences.
Whether you have a pre-nup, cohabitation agreement, or even a pet-nup – these documents are not about anticipating a breakup. They’re about building a strong foundation for your relationship and protecting your future, both financially and emotionally. Open communication is key and being able to discuss your expectations and values beforehand is a great foundation for any long-term relationship.
A solicitor will need to be involved in drafting a pre-nup for it to pass the ‘test’ at a later date. It’s probably best to make sure any agreement is legally sound by running your proposal past a lawyer, and then you can file it in a bottom drawer and hope it’s never used.
It may be an additional cost when you are moving house, getting married, or adding a furry companion to your lives, but it is like an insurance policy that will protect you if the worst happens, as it can take away much of the worry about financial and emotional outcomes.”
Please do not hesitate to contact a member of the family team at Whitehead Monckton who will be pleased to help you further if you have any questions on this article.
