Pre-Nuptial Agreements – Reforms Recommended

In case you missed it, the long awaited report from the Law Commission has highlighted a number of areas of Family Law which are ripe for reform. The underlying premise of the report is that it ought to be simpler for couples to settle their finances when ending their marriage or civil partnership and that there should be a greater degree of predictability where the outcome is concerned. One measure which is suggested is for the Family Justice Council to provide guidance on what amounts to ‘financial needs’ and also to consider a formula to be used to determine financial settlements.

A further key suggestion is that ‘qualifying nuptial agreements’ should be upheld by the courts. Presently couples can enter into Pre- and Post-Nuptial agreements to regulate how they would settle their finances if their marriage or civil partnership breaks down. Whilst these would be considered by a court there is no guarantee that they will be upheld if there is any disagreement. To make such agreements enforceable would hopefully mean that more couples would feel confident in entering into them thereby reducing any uncertainty should the relationship end and also the burden on the current court system. It will however remain vital that such agreements are freely entered into and that both parties take legal advice.

Although guidance on financial needs and the possibility of a formula would provide some welcome certainty it remains unclear as to how the formula will be applied, particularly to take into account regional differences. It is also questionable whether the proposed reforms go far enough. For many years Family lawyers have sought wider ranging reform of the 1973 Matrimonial Causes Act, calling for a reflection of modern times by removing the conflict that often follows the requirement of assigning blame for the breakdown of a marriage or civil partnership to one party.

Catherine Dews, Partner and Head of the Family law Team at Chadwick Lawrence said “The recommendations certainly make interesting reading. Clarity over needs and a formulaic approach might well help to give many couples the certainty that they look for when their relationship ends. The reform of nuptial agreements will also bring our system into line with most other European countries and provide a structure for ‘qualifying’ agreements. On the whole we welcome the report but there is clearly more detail to come.”

At Chadwick Lawrence our team of Family law specialists has significant experience of dealing with all aspects of Family law, including nuptial agreements and financial settlements. To arrange a free initial appointment at any of our offices across West Yorkshire, or at your place of business, then please contact us on 01484 519999