Press release

November 12, 2015

Parents driving rise of prenuptial agreements, solicitors say

Solicitors have revealed a rise in enquiries about prenuptial agreements could be driven by the parents of first time home buyers.

Spiralling house prices, the prospect of interest rate rises and an increase in deposits are all factors in young, married couples seeking help from the ‘bank of mum and dad' to get on the property ladder.

As a result, parents are insisting their deposits are protected in case their child's relationship breaks down, and to protect their future inheritance.

This year the Halifax revealed there had been a rise in the number of first time buyers with 326,000 people making their first move into the housing market, the highest number since 2007.

Tony Roe, a Berkshire-based divorce solicitor and member of the Law Society's Family Section Advisory Group, said he had seen an increase in enquiries about prenuptial agreements.

Tony, who was also a member of the Law Commission's Advisory Group dealing with the legal status of prenuptial and agreements has used prenuptial agreements to help with cases he has worked on. He said: "Prenups are not like the movies.

"Prenuptial agreements are carefully crafted documents with significant legal implications. The law in England and Wales is very different from the United States or mainland Europe. There are a lot of public misconceptions about these agreements.

"To have any chance of standing up, certain key things should be done. As well as there being mutual financial disclosure, each party should get their own independent legal advice from a qualified solicitor.

"Seeing a solicitor will give each party a clear understanding of the complexities of these documents in an area where the law is changing all the time.

"My firm is often contacted by parents who want to try to protect the future inheritance of their child who is about to marry. A properly drafted prenuptial agreement can help".

Eileen Macqueen, a solicitor and divorce law expert from Devonshires, in London, said there had been a noticeable increase in people asking her about setting up a prenuptial agreement.

"When a couple marries, both spouses immediately obtain the right to bring a claim against the other's property, whoever legally owns or paid for it," she said.

"In the event of a marriage breakdown, a court can consider these claims and has the ability to determine that each spouse is entitled to half of the value of the marital home, whether it was paid for by one spouse's parents or not.

"This means if one of the married couple's parents had helped them buy a property with a large deposit, it could be at risk if a judge decides the value of the property should be split 50/50 in the divorce.

"If a prenuptial agreement is in place the court can take into consideration money provided by parents and deem that the sums are not a matrimonial asset and should not be divided as such. Therefore, if the relationship does break down the deposit can be protected."

Eileen advised that it was a complex area of law that required careful navigation.

"Prenuptial agreements require careful planning to set up as legally the area can be a minefield," she said.

"It's advisable to have an informal consultation with a solicitor to discuss your options. It's likely to be a sensitive issue to broach.

"A qualified, professional solicitor will be able to provide you with guidance on how to set a pre-nuptial agreement up properly. They can take some time to arrange so I would advise starting the process with a solicitor a minimum of two months before the wedding."

The Find a Solicitor website allows people to search a database of nearly 150,000 legal professionals across England and Wales. The service is available here:www.lawsociety.org.uk/findasolicitor

Notes to editors:

About the Law Society of England and Wales

The Law Society is the independent professional body, established for solicitors in 1825, that works globally to support and represent its members, promoting the highest professional standards and the rule of law.

About the consumer campaign

Public relations agency DTW is managing the Law Society's consumer campaign.

For more information on this media release and the campaign and to arrange an interview with Tony Roe, please contact Chris Sealey on 07786 512833 or 01287 610404.