post-nuptial agreements

ps2659

A relative of mine wants to gift his daughter a property she is married and he wants to be sure that if she divorces this gift will not form part of the divorce settlement. Maybe there is another way or agreement, grateful for any any help.

Keep_pedalling

Is the property being gifted his main home and if so, does he plan to remain living in it?

anna_1977

Not sure if it's similar at all but I was 'given' a house by my trust fund when I was married. When I divorced my husband claimed a stake as he had helped with utility bills and DIY in the house

Guest101

ps2659 wrote: »

A relative of mine wants to gift his daughter a property she is married and he wants to be sure that if she divorces this gift will not form part of the divorce settlement. Maybe there is another way or agreement, grateful for any any help.

That's not how 'gifts' work.

Person_one

ps2659 wrote: »

A relative of mine wants to gift his daughter a property she is married and he wants to be sure that if she divorces this gift will not form part of the divorce settlement. Maybe there is another way or agreement, grateful for any any help.

If he wants that, he can't give it to her.

ps2659

Keep_pedalling wrote: »

Is the property being gifted his main home and if so, does he plan to remain living in it?

No the property is a flat which he rents and has owned for many years. Thanks for your reply

Keep_pedalling

ps2659 wrote: »

No the property is a flat which he rents and has owned for many years. Thanks for your reply

That's good, giving your home away could be disasterous in case of a divorce. Providing a gift to a married child does mean that some of that gift is likely to be spit in case of a divorce, but I would not hold back because of that because that gives the impression you do not trust your child's judgment.

If the plan is to give his daughter a source of income from the rented flat then rather than give her the flat to sell then the alternative solution would be to retain ownership and pass on the income, but that would probable not be the most tax efficient way of doing it.

TBagpuss

It is possible to have a post-nuptial agreement. It works in a similar way to a pre-nup, in that it is not legally binding but does form part of the evidence which a Judge would consider, in the event of a divorce.
The couple would each need to take separate legal advice before signing the agreement.
As with a pre-nup, the longer they stay married after the agreement is made, the less weight is likely to be given to it, and it might be overridden if there were changes in circumstances.

ps2659

If the plan is to give his daughter a source of income from the rented flat then rather than give her the flat to sell then the alternative solution would be to retain ownership and pass on the income, but that would probable not be the most tax efficient way of doing it.[/QUOTE]


Her dad is prepared to gift her the flat with the income from it to which she has no desire to sell, therefore the income from the flat would be income for her and her husband and children to share however, should they divorce his wishes are for her to retain the flat without it being part of a divorce settlement. The husband has stated he is prepared to sign to this effect, just interested if there is a simple form where all parties sign to agree to this without heavy solicitors costs or even a post nuptial agreement, he is doing this as a way to limit inheritance tax, happy for any help Thanks .

Guest101

ps2659 wrote: »

If the plan is to give his daughter a source of income from the rented flat then rather than give her the flat to sell then the alternative solution would be to retain ownership and pass on the income, but that would probable not be the most tax efficient way of doing it.

Her dad is prepared to gift her the flat with the income from it to which she has no desire to sell, therefore the income from the flat would be income for her and her husband and children to share however, should they divorce his wishes are for her to retain the flat without it being part of a divorce settlement. The husband has stated he is prepared to sign to this effect, just interested if there is a simple form where all parties sign to agree to this without heavy solicitors costs or even a post nuptial agreement, he is doing this as a way to limit inheritance tax, happy for any help Thanks .[/QUOTE]

No there is no simple way to do this.

Their ownership of property is joint. Whilst a divorce in1-3 years would likely mean the property is handed to her.

Down the line this is not the case. After many years, he would be, rightly, entitled to a share.

HappyMJ

ps2659 wrote: »

If the plan is to give his daughter a source of income from the rented flat then rather than give her the flat to sell then the alternative solution would be to retain ownership and pass on the income, but that would probable not be the most tax efficient way of doing it.,,,,,,,,,,,,,,,,,


Her dad is prepared to gift her the flat with the income from it to which she has no desire to sell, therefore the income from the flat would be income for her and her husband and children to share however, should they divorce his wishes are for her to retain the flat without it being part of a divorce settlement. The husband has stated he is prepared to sign to this effect, just interested if there is a simple form where all parties sign to agree to this without heavy solicitors costs or even a post nuptial agreement, he is doing this as a way to limit inheritance tax, happy for any help Thanks .

They just agree to it. They write down their intentions now and both sign the document witnessed by a third party.

The court can still override the document if it leaves one party significantly worse off in the case of divorce.

Make sure the person with no interest doesn't do anything to the property. No repairs and doesn't manage the receipt of rent...nothing....nothing at all.

Any income from the property must be set aside and used for maintenance of the property. She cannot use any of the income either of them earn in their normal jobs or from benefits to maintain the property or pay off any loans taken against the property.