Pre-nuptial agreements

May 22 2009

Third time lucky?

A FRIEND of mine on her second marriage told me there was nothing worse than a bad marriage, except perhaps two bad marriages.

It is a fact of life that marriages fail.

It’s also a fact of life that separation and divorce are likely to be emotional, stressful and often expensive experiences. The outcome is not always what you want or expect.

The separations and divorces of the rich and famous which are conducted in the glare of publicity as they fight over millions may seem a world away for most of us but the process is upsetting for anyone no matter how much may be at stake.

So how can you try to reduce the negative effects of separation or divorce? One possibility may be to consider a Pre-nuptial Agreement even before tying the knot. This is a written agreement between you and your future spouse setting out how you will deal with matters should you later separate. You may want to consider this type of agreement even after marriage – a Post-nuptial Agreement – to deal with the issues which will face you on separation.

Pre-nuptial Agreements were relatively uncommon until recently but with second or third marriages becoming increasingly common there is more awareness of the need to protect the assets which you bring into the marriage in the event that that marriage also breaks down. You may also want to protect assets for the benefit of children of a previous marriage. For instance did you already have substantial savings or own a property prior to marriage? Do you own your own business? Perhaps you also want to deal with any future liability for debts incurred.

Even if you are not married but cohabiting you may wish to consider this type of Agreement as the Family Law (Scotland) Act 2006 provided limited rights to couples who cohabit including the right to apply to a court for payment of a lump sum of money in the event that the relationship fails.

Think of the agreement as an insurance policy. Hopefully you will never have the need to make a claim but if you do it may make the experience of separation and divorce just a little less stressful.