Contracting Out Agreements
Contracting Out Agreements (also known as a Pre-nup) is a written agreement that states how a couple want to divide their property if their relationship comes to an end. A contracting out agreement can be put in place at any time but it is important that an agreement is made before the relationship has lasted three years. Contracting Out Agreements are usually made by couples entering a second or subsequent relationship, especially if they have their own separate property they would like to protect for their family.
If you think this is something you should look into please get in touch.
Unfortunately, divorce and separations are a messy business. For couples going through a relationship break-up, it is rarely a pleasant time. More often than not it is filled with hurt, anger, confusion fierce debate on issues relating to children, pets and property.
Entitlement to property is the most common topic of debate between separating couples. The Property (Relationships) Act 1976 (PRA) provides rules that determine whether assets are classified as relationship property or separate property.
In general if an asset is determined to be relationship property the PRA provides that it should be divided equally. On the other hand, assets determined to be separate property are not subject to equal division. These rules apply unless a contracting out agreement as been put in place.
To understand how the rules affect you please call us.