13th November 2015
The Law Society has seen an increase in prenups as parents look to protect hefty gifts and loans given to children for property.
Parents who are gifting or lending their children money to purchase a property are protecting their investment by making sure their children take out a prenuptial agreement before getting married.
Amid soaring house prices, parents are concerned they would lose out on any growth in the value of the property should their child and their spouse divorce.
With property prices so high, first-time buyers are getting an increasingly turning to parents for help. The UK average salary is £26,500 whereas the average property price is almost £200,000.
The Law Society said there has been a rise in enquiries about prenups and Tony Roe, a divorce solicitor, said he is often contact by parents who are concerned about prenups for their children.
‘Prenups are not like the movies,’ he said. ‘Prenuptial agreements are carefully crafted documents with significant legal implications. The law in England and Wales is very different from the United States and mainland Europe. There are lots of public misconceptions about these agreements. To have any chance of standing up, certain key things should be done. As well as there being mutual financial disclosure, each party should get their own independent legal advice.’
He added that seeing a solicitor will ‘give each party a clear understanding of the complexities of these documents in an area where law is changing all the time’.
‘My firm is often contacts by parents who want to try to protect future inheritance of their child who is about to marry. A properly drafted prenuptial agreement can help,’ he said.