In this article Isabella Beck looks at The Law Commission’s Scoping Report and some of the different situations that couples are using nuptial agreements.
This recent report suggests that nuptial agreements are being used in a wider range of situations than they were 10 years ago. While these findings certainly support our recent YouGov survey, which shows that more people back the idea of nuptial agreements than before, what are some of the situations that nuptial agreements are being used in today and that the Law Commission identifies in their report?
The Law Commission has previously said that nuptial agreements would be likely to be particularly useful for high net-worth couples wanting to protect pre-acquired or inherited wealth, or couples with children from a previous relationship. It is not necessarily surprising then, that this report has found the majority of people entering into prenuptial agreements today are couples with pre-acquired or inherited wealth. The report also suggests that an increasing number of people who are re-marrying later in life, who have often had an unpleasant experience of divorce are using nuptial agreements. In the context of second marriages, the report also found that nuptial agreement are often being used to protect the interest of one of the couple’s children.
Farming families, are also identified in the report, as increasingly using nuptial agreements. According to the report, they use nuptial agreements in order to try and protect farms, which are often assets passed from one generation to the next. In addition, the report refers to nuptial agreements being used by young professionals, who are typically in their mid-30s, working in professional jobs and who have some savings.
The report finds that foreign couples too are using pre-nuptial agreements. Those arriving from civil law jurisdictions are used to matrimonial property regimes providing the certainty of a defined set of rules applying to their marriage or partnership. They are frequently entering into nuptial agreements either to try and replicate a regime they had elected or to build in additional English focussed provisions centred around needs. The report also highlighted some initial client data which suggests that there is a growing trend of pre-nuptial agreements among LGBTQ+ couples.
Overall, the Law Commission’s report clearly suggests that there are an increasing number of situations when couples are deciding to enter into nuptial agreements and that also reflects our experience on the ground. Once rare, nuptial agreements are now commonplace in all areas of society and an essential tool to consider alongside tax and estate planning.
To read more about the Law Commission’s views on pre and post nuptial agreements see Chapter 7 ‘Nuptial Agreements’ of the scoping report.
-------------------------
Kingsley Napley has launched Nuptial, a new service which provides advice on entering into, amending, or contesting pre or post nuptial agreements. For more details click here.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
Share insightLinkedIn X Facebook Email to a friend Print