Protecting Pre-Martial Assets

roadweary

Hi,

Please let me politely start this thread by explaining that I am not concerned with people's views on the morality or justification on prenups or sanctity of marriage etc. We are all entitled to our opinions on how we should trust our partners and our mind set towards marriage and what might come in the future. It's just that I am not asking for other's views on this.

My situation is that marriage is on the cards and I would like to understand the possible ways of protecting premarital assets but the key one being about 100k of equity in a house that I currenly rent out.

The bigger picture is that I have a son from a previous relationship who has severe disabilities and whom I wish to provide for in the future. I will need that equity and more for his needs. My son doesn't live with me, unfortunately, but that is another story.

My partner is aware of my wishes and agrees 100% in keeping this financial aspect separate to our marital finances.

• I have looked at prenups but these seems shakey legally at best.
• Trusts - seem complicated, not 100% sure how they work, not sure of the situation if I needed to free the money up in the future - eg sell house, reinvest in another property (ies) etc?
• Business - a friend suggested starting a business and assigning the house as business asset. I don't think this would work as:

• Money-laundering and other legislation I imagine would make it quite hard to assign an asset to a business unless it could be shown to be both a legitimate business and a legitimate business asset.

• I think the law also looks at what is done with assets and if it is obvious these have been 'disguised' and that the asset could be used for the financial gain of the person that assigned it in this way, they would just ignore it and consider the value as part of the person's assets just as any other savings etc

It seems crazy that in the uk, if 2 mature individuals (around 40 yrs old) wish to make financial provisions in the case of a future divorce, and take independent legal advice, that they can't create a water-tight contract to that effect.

Any advice gratefully received.

LandyAndy

roadweary wrote: »

It seems crazy that in the uk, if 2 mature individuals (around 40 yrs old) wish to make financial provisions in the case of a future divorce, and take independent legal advice, that they can't create a water-tight contract to that effect.

Any advice gratefully received.

What does your solicitor say?

Either you can or you can't and they should be able to tell you which it is.

It's likely to be better advice than you'll get from 100 internet randoms.:)

roadweary

I met a solicitor that talked of the prenup being shakey. I didn't know the default position of the law at that point (eg all assets divided up regardless of pre-marriage or not) and was surprised to find out that the prenup wouldn't necessarily carry much weight. I hadn't thought of the other options at that point (my fault I guess) and wasn't particularly impressed with the solicitor. So I thought I'd invite the group 'forum brain' to offer ideas for me to research before I invested in finding another solicitor to discuss them with.

Person_one

Are you sure you want to get married?

Its probably easier to achieve what you want to without.

LandyAndy

roadweary wrote: »

I met a solicitor that talked of the prenup being shakey. I didn't know the default position of the law at that point (eg all assets divided up regardless of pre-marriage or not) and was surprised to find out that the prenup wouldn't necessarily carry much weight. I hadn't thought of the other options at that point (my fault I guess) and wasn't particularly impressed with the solicitor. So I thought I'd invite the group 'forum brain' to offer ideas for me to research before I invested in finding another solicitor to discuss them with.

Well there is certainly some merit in using the wisdom of crowds in many situations:).

Less useful in something as clear cut as a legal position rather than more 'touchy / feely' situations, though.

Nevertheless I hope you get some good advice.:)

roadweary

I appreciate that, but yes I am looking to get married.

Person_one wrote: »

Are you sure you want to get married?

Its probably easier to achieve what you want to without.

Mojisola

roadweary wrote: »

I appreciate that, but yes I am looking to get married.

If marriage is definite, I think the only way that you can protect the asset for your son is to go down the trust route.

lessonlearned

HI

Do not attempt a diy approach on this, you definitely need a good solicior.

Your first consultation with a solicitor should be free. You can then ask them to make a report of their recommendations to you in writing. Again this will be free.

Give yourself a couple of weeks to digest the report and clarify anything you are concerned about and then go ahead with the solicitor you feel most comfortable with.

A pre-nup is probably not the best approach, it is more likely to be a trust.

You may also want to consider putting the ownership of any new property you may buy with your husband as Tenants in Common rather than Joint Tenants. This would give your child and indeed any further children, protection of any future equity gains on your new property.

As with any Trusts, the decision to go for TIC should be discussed with a good solicitor who will tailor everything to suit your own particular circumstances and wishes.

Whether you marry or just co-habit I think that, where children are concerned, it is very wise to plan ahead and to get professional advice.

Good luck.

zcrat41

A trust would be your best bet. Although it may be expensive for the advice and to set it up I would say it will be worth every penny. See a good solicitor - one who specialises I would say.

I have a very close involvement in a trust and it was the best thing that could have been done for that family - has ensured certain things for the children.

clearingout

I think (no expert, just someone who went through a hellish divorce recently) what causes problems with marriages is children as children of the marriage are what the court tries to protect. If you're both 40, I would assume additional children are unlikely? The other thing that results in large payouts is one partner not working for much of the marriage coupled with the marriage being a long one. Again, if you've got to 40, the chances are you're both in established careers and doing OK? I know prenups are not technically legally binding but it is said that judges are taking them into account more and more - if you couple that fact with the likelihood of children and a non-working wife - it feels to me that a properly drawn up prenup with legal advice being taken on both sides and not signed 5 minutes before the wedding would probably go along way....

Does your wife to be have anything she needs to protect in the event of marriage breaking down?

You could try asking on https://www.wikivorce.com for advice - would get you some more opinion.

roadweary

Thanks all.

@ clearingout - Additional children not planned. Partner self employed, part time, v low income so massive difference in incomes...

@lessonlearned - I'm yet to be aware of a solicitor that will meet, let alone produce a report for no charge...