Whilst the saying is “love may conquer all”, sometimes life gets in the way: particularly when it concerns finances, children and, increasingly, our four-legged friends. For those intending to be in long-term relationships, whether married or not, planning from an early stage prevents complications in the future.
While discussing what might happen if you break up might seem unromantic, this can be useful to establish a strong foundation for a blossoming long-term relationship.
Pre-nups, cohabitation agreements and even “pet-nups” can be particularly important if one partner starts the relationship with significantly more financial resources gained before the relationship, or if one has debts. The agreement can cover property ownership and financial responsibility or protect inheritance rights for children of a previous relationship.
Planning for the rest of your lives
For couples getting married in England and Wales, a pre-nuptial agreement can set out clear financial arrangements for what would happen during 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, a court is likely to uphold them provided they meet the qualifying criteria set in a landmark judgement by the Supreme Court and further reviewed by the Law Commission. The criteria 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.
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. Partners can agree on the financial contributions each will make towards shared bills and mortgage payments, who takes responsibility for maintenance, and what happens to the property if your relationship breaks down, or if one partner wants to sell. If the property is owned in one partner’s sole name, the agreement can also make it clear whether it’s intended for the other partner to acquire rights to the property if they make certain payments such as mortgage payments.
These agreements can go beyond simply finances to address the everyday practicalities of living together such as division of household chores, desired living arrangements in the future, and even how to handle potential differences.
Furry friends
While not legally binding in England and Wales, a “pet-nup” can give peace of mind to pet owners as it can offer a framework to exist alongside the arrangements for property and finances. The pet-nup can name the primary caregiver and how pet-related expenses will be split, both during your time together and in the event of a breakup. It can include who would take the pet if you were to separate and what visitation arrangements there may be for the other partner.
Each of 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. Communication in all relationships is vital 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 prenup for it to be able to be upheld at court. It’s certainly best to make sure any agreement is legally sound by taking advice from a lawyer. You can then file it away in a safe space and hope you never have to look at it again.
This may be an additional cost that you had not budgeted for, but it is like an insurance policy that will protect you if the worst happens.
A pet-nup setting out responsibilities could prove even more important with the recent changes to the law, requiring all cats and dogs to be microchipped and registered on a database. Any owner who fails to do so could find themselves paying a fine of £500 if they don’t comply. The latest legislation applies to all cats aged 20 weeks and older, including indoor cats, and sits alongside the legislation introduced for dogs in April 2016.
Howell Jones is an experienced pre & post-nuptial solicitor in Surrey. Our team focus on the positives of these agreements, helping to protect both parties fairly so you can continue your strong and happy relationship.
