Legal News

The Law Commission has recommended that prenuptial agreements should be made legally binding in a divorce but only when the requirements of any children of the marriage and the needs of the divorcing couple have been met.

The Law Commission has issued a report on the subject of reforming matrimonial property laws and has stated that standard formulas are needed to more easily resolve disputes over financial matters. In British courts a prenup agreement is already considered enforceable but now the Law Commission wants them to become legally binding provided certain standards are met. One of the requirements would be that at the time the agreement is signed both parties should disclose the relevant information on their financial status as well as having taken legal advice on the situation.

The report from the Law Commission suggests that spouses should come to an agreement on financial needs but the courts will make sure that they are fair to all involved, including any children of the marriage. Having a prenuptial agreement will not prevent one of the parties from making an application for a financial order. These changes will bring the system in line with other European standards.

Prenuptial agreements that do not protect each party could cause more harm than good. It is thought that such agreements would still only be used by the wealthy. The report has also suggested that the Family Justice Council put together guidance on ‘financial needs’ to help couples more easily reach a financial agreement. This will allow a standard set of guidelines to be applied in all cases.

The report from the Law Commission will be passed on to the Ministry of Justice and then it will be determined if new legislation is to be drawn up. In the past there has been a reluctance to change marriage laws. Courts have not been obliged to follow the agreements used in the past and it has therefore been difficult for divorce solicitors to give couples clear advice. It is hoped that with clearer laws on these agreements couples can be given more control over the financial affairs when the relationship ends and make it easier to resolve.

Experts have spoken out in support of these suggestions from the Law Commission providing that clarification can be provided on the issue of ‘needs’ for all members of the family. It is hoped that the government will take the opportunity to give couples more control over financial settlements in the event of a break-up.

Duncan Lewis Divorce Solicitors

Duncan Lewis is a leading law firm with experienced family and divorce solicitors and is well placed to advise on all aspects of family law including child contact, residency and ancillary payments as well as the issue of prenuptial agreements.

In addition, Duncan Lewis is able to give advice on all aspects of Legal Aid service for those who need assistance with funding their divorce.

For experienced and professional help on all aspects of family law, contact Duncan Lewis divorce solicitors on 020 7923 4020.