Alex Brereton and Priya Mohanakumar discuss financial ‘needs’ in pre-nuptial agreements in WealthBriefing
Alex and Priya’s article was posted in WealthBriefing, 19 February 2025, and can be seen here.
Alex Brereton, Partner, and Priya Monhanakumar, Trainee Solicitor, in our Family & Relationships department discuss a 2024 report from the Law Commission. They explain how case law has evolved to suggest that financial 'needs' in pre-nuptial agreements should be considered less generously than they would be without such an agreement.
This shift reflects a broader push for greater certainty and efficiency in financial settlements following divorce or the dissolution of civil partnerships.
The Law Commission’s scoping report, published in December 2024, highlights the need for fundamental reform in how financial matters are handled during separation. It criticises the current system’s heavy reliance on judicial discretion, which often leads to prolonged disputes rather than encouraging early settlement. While the report does not propose specific legislative changes, it outlines several options for the government to explore in future advisory reports.
A key recommendation is the legal recognition of qualifying pre- and post-nuptial agreements, which would limit judicial discretion and provide separating couples with more predictable outcomes. Alex and Priya suggest that this could mark a significant shift in family law, making pre-nups more enforceable and reducing the scope for costly litigation. If adopted, these reforms could streamline the divorce process and offer couples greater control over their financial futures.
Read the full article on the WealthBriefing website [external link].