Eaves Solicitors

Legal Updates

Our legal updates are for information purposes only and cannot be relied on for legal advice. You should always discuss your particular situation in detail with a legal advisor.

“Prevention is better than Cure”

This is certainly true when it comes to dealing with the financial issues after the breakdown of a relationship.

When couples first decide to get married or set up home together, they rarely consider the possibility that things may not work out quite as they had hoped.

What many people do not realise is that there are steps that can be taken by couples when they are together in order to prevent disputes arising in the future. These steps can provide peace of mind now and may well avoid the need for costly and distressing disputes later.

The law is different for couples who choose to live together and for those couples who either marry or enter a civil partnership. The steps that may need to be taken may also vary depending on whether the couple own property and have children.

At the moment in England and Wales, if an engaged or married couple or a couple entering into a civil partnership choose to enter into an agreement setting out how they think the finances should be sorted out if they later decide to separate, it is not binding on a Court. However, there have been recent cases where the Court of Appeal has been prepared to implement the agreement when both parties took legal advice. So if done properly, it can be very useful to have one drawn up.

It is also possible that very soon such agreements will become fully legally binding, as they are in the USA and other European countries, as the Law Commission are currently investigating this issue and are due to report on their conclusions in the Summer of 2010.

Cohabiting couples can also choose to enter into similar agreements.

Further documents can also be drawn up when a couple purchases property together. It is particularly important that specialist advice is taken to cover some of the following questions:

  • What should happen if the couple decides to separate and they have children. Should the parent who is the main carer be able to remain in the home until the children grow up?
  • How should the sale proceeds be divided between the couple when one of them may have paid the deposit or invested unequal amounts of money into the property?
  • How should the sale proceeds be divided when only one of the couple pays the mortgage, maybe because the other is caring for their children?

In such cases when the couple has not entered into one of these trust deeds, then it may be necessary to issue Court proceedings if a dispute arises when the role of the Court will be to try and find out what both parties intentions were regarding these matters. If those intentions are not written down, then it can be very difficult for a Court to work out what is fair. It is far better to ensure that both parties’ intentions are recorded properly in a legally binding trust deed at the outset.

It is always worth couples making an appointment for specialist advice tailored to their particular situation whilst they are together or before they contemplate entering into a new relationship rather than wait for it to break down, when communication maybe far more difficult as emotions become frayed.

Provided couples are in agreement with each other about what should happen in the event of their relationship coming to an end, then a solicitor can usually draw up the relevant documents for them both.

Prevention can be less emotionally and financially painful than cure, so please call us today for a health check when we can advise you fully on your individual circumstances.