*Spoiler Alert*
Our office has been abuzz over the last couple of weeks with discussions about the latest series of Love is Blind (we are not above a good reality TV binge). However, our discussions have taken a more professional turn as the series has gone on, as the participants have found themselves grappling with the sorts of issues that as family lawyers we deal with day in, day out.
For those of you who haven’t yet watched the series, the format of the show is that the participants go on a series of blind dates (literally behind screens), and slowly whittle down their options until just one person remains. They can only meet face-to-face once they have established a deep emotional connection and one of them proposes. They then leave the safety of the ‘pod’, and live together in the ‘real world’, in readiness for tying the knot a few weeks later. On the wedding day itself, the couples decide (apparently without prior consultation) whether to press ahead with the marriage or call time on the relationship – trying to predict the outcomes, as a viewer, is harder than it sounds.
During their whirlwind courtships, the couples are quick to try and establish their compatibility and see what might be deal breakers, whether that’s misaligned core values or different lifestyle choices. Through those discussions, a number of financial (and legal) considerations have come to light, with Freddie saying to his fiancée, Catherine, that he would need her to enter into a -prenuptial agreement, and Maria telling her fiancé, Tom, that she didn’t think it would be fair for her to make contributions towards the mortgage of a property owned by him. We thought it would be helpful to give a family lawyer’s perspective on the questions raised by the couples, demystifying any issues along the way.
Catherine and Freddie – Prenuptial Agreements
Given the unconventional nature of the relationships, it is perhaps surprising that the question of prenuptial agreements hasn’t come up sooner (or more often). However, when Freddie (a funeral director, who owns his own home) raises this with his fiancée Catherine (a dental nurse from Jersey), this is met with concern and a fair few questions from her friends and family.
Is it unreasonable to ask for a prenuptial agreement?
Absolutely not. There can be many reasons for wanting to enter into a prenuptial agreement: you may want to protect wealth that you have built up prior to marriage, or a future inheritance, or you may just want to ensure there is some certainty, and to avoid difficult conversations about finances at a time when emotions will be running high. Whatever the reason for doing so, prenuptial agreements are effectively financial planning, and can be one of the best ways to protect your finances.
Is it controlling to ask for a prenuptial agreement?
As discussed above, this is a practical suggestion, especially in circumstances like this, where the couple has only known each other for a very short time (although generally such an agreement should be entered into no less than 28 days before the wedding day to avoid the suggestion of there being undue pressure). That is not to say that they cannot be used in this way, and as family lawyers, we are always on the lookout for signs of controlling behaviour, which is now a recognised form of domestic abuse.
Can you deal with what happens to your assets on your death in a prenuptial agreement?
No. A prenuptial agreement governs the division of finances when a married couple separates. If you want to control what happens to your assets on death, this should be recorded in a Will.
Are prenuptial agreements legally binding?
No- not in England & Wales. However, if they meet very specific criteria, the court is likely to uphold them. In particular, the agreement should not give rise to an unfair outcome for either party and both parties should have had independent legal advice and provided financial disclosure to one another.
Maria and Tom – contributions towards a mortgage
Maria and Tom have, sensibly, discussed their relationship beyond the wedding (if they decide to say ‘I do’) and what their living arrangements will be. It is understood that Tom owns his own property and Maria has raised concerns about moving in with him and paying towards his mortgage. The impact of this on them both will differ significantly if they are married or not.
If Maria moves into Tom’s property, will she have any interest in the property?
If the couple gets married and move into Tom’s property, it will become ‘the family home’. The family home holds a unique status within family law, and will likely be treated as a matrimonial asset, that will be part of the assets available for division in the event of a later divorce. That is not to say it will be divided equally; the appropriate division will depend on all of the circumstances of the case, for example, the length of the marriage and the needs of the parties. Some weight may be given to the fact it was acquired before the marriage.
Separately, Maria would acquire ‘Home Rights’ in respect of the property, which would mean she has a right to occupy the property, even if she isn’t a legal owner.
If the couple does not get married, Maria’s rights in respect of the property would be limited to a potential claim under the Trusts of Land and Appointment of Trustees Act 1996. Unless she can establish that there was a common intention between them that she would acquire an interest in the property, or that there is some other reason why it would inequitable, Maria would have no right to receive anything in respect of the property if they separated.
If they don’t say ‘I do’, what status will Maria’s contributions towards Tom’s mortgage have?
Contributions towards mortgage payments can be evidence that the couple intended for the non-owner of the property to acquire a beneficial interest. However, this is not clear cut and would need to be considered alongside all other circumstances.
What could Tom do to protect his property?
If Tom did not intend for Maria to acquire a beneficial interest in his property, it would be sensible to record this in a cohabitation agreement. If they intend to get married, Tom should also be thinking about a prenuptial agreement.
Should the couples be having conversations about their finances before making the decision to tie the knot?
Yes, absolutely. Whilst not always the most romantic conversation starter, it really is important that the couples have these difficult conversations about their finances, their ideals and future plans before they say ‘I do’. These are the exact topics which can lead to arguments down the line and having open discussions early on will allow them both to properly prepare for their future together (or apart) with a good appreciation of what this will look like. If nothing else, this is simply good financial planning! Whilst love may be blind, there is no reason for these couples to walk into their future blind as well.
