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, 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.
Pre-Nups Are Non-Binding In England & Wales – Is That About To Change?
On 18 December 2024, the Law Commission published its long-awaited scoping report on the laws governing finances on divorce and the ending of civil partnerships in England & Wales. While it’s unlikely to be top of the poolside reading list for those dashing off for some winter sun this month, the report does nevertheless make an absorbing read for anyone interested in how financial separation could be made a less painful and time-consuming process than it is today.
The report concludes that both the law and procedure need fundamental reform to provide separating couples with greater certainty, finding that the high level of judicial discretion built in to the current system too often serves to broaden the level of dispute, rather than encouraging settlement. As this is a scoping report, rather than advising on the structure of reform, the report sets out various options for government to consider and commission further advisory reports on.
That is all well and good, but what does this have to do with pre-nups, one might well ask? Well, with certainty being the overriding aim, it follows that the report recommends that qualifying pre- and post-nuptial agreements should be considered legally binding documents – thereby removing the current discretion for judges to disregard these agreements.
Read the full article: Pre-Nups Are Non-Binding In England & Wales – Is That About To Change? (WealthBriefing)
