Prenuptial Agreements

Posted 26/04/2016 By: Stephen Williams

It is said that Divorce among the over 60s is now an increasing phenomenon. Indeed some commentators have said that over 60s are divorcing in their “droves”. This follows office for national statistics figures reporting an increase in divorces for men over 60, from one 1.6 divorces per 1000 in 1991, to 2.3 divorces per 1000 in 2011.

Whilst these figures are not meteoric, they do perhaps suggest that a careful consideration of the parties’ financial situations prior to remarriage, would be very helpful.

Considering such matters while the fires of passion are burning bright may not be something that immediately springs to mind as important but it nevertheless is very important that so called “silver splitters” think very carefully about their financial position before entering into a marriage and consider entering into a Prenuptial/Premarital Agreement. In the case of people simply wishing to enter into cohabitations this issue is of equal importance.

There can of course be a reluctance to talk about money, people sometimes see this as potentially offensive or mercenary, but in purely practical terms it is vital that people give consideration to their financial positions. The ramifications for not considering these matters carefully prior to cohabitation or prior to remarriage can well be dramatic. In your 60s it is possible that you will have amassed a number of assets. You may have children and grandchildren as a result of a previous marriage or relationship, who you wish to benefit under the terms of your Will.

You may have made a Will already however it is important to make sure that it suits your situation at each particular stage of your divorce and/or remarriage. If the Will was written prior to your divorce, then the Decree Absolute means that any mention of your ex-spouse is disregarded – this may be a desirable consequence but it is one that should be considered carefully. It is almost certainly a good idea to have a new Will prepared at this point. A subsequent remarriage then revokes the previous Will (unless it was prepared in anticipation of that particular marriage). If your Will is revoked leaving you without a valid Will then your estate will be dealt with according to the Rules of Intestacy, which rarely adhere to your actual wishes and could result in your new spouse receiving the bulk of your estate at the expense of children from any previous relationship.

The making of a Prenuptial or Cohabitation Agreement allows the parties soberly and carefully to work out prior to their marriage or cohabitation what arrangements they want to put in place in respect of their financial matters both during their marriage and cohabitation and upon death and confirm those arrangements subsequently in a Will.

It ensures that the parties’ assets go where they really want them to go in the event of there being a breakdown in the marriage or cohabitation or on death, and it provides certainty at a time when their thoughts will probably range not only over what provision they want to make for their new partner, but what provision they want to ensure occurs in respect of their children and grandchildren.

My advice to anyone thinking of a remarriage or cohabitation is to bite the bullet and discuss financial arrangements for the future with their intended partner, and to enter into a binding Prenuptial or Cohabitation Agreement prior to the event.