post-nuptial agreements

ps2659

HappyMJ wrote: »

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.

I am really grateful for your reply is there a template for an agreement, her intensions are to have the rent payments to maintain the property and anything left over will be placed in a fund for her children, would this be OK .Thanks in advance for any replies.

Mattygroves2

Both she and her husband need legal advice and any agreement should be drawn up properly.

The parents should also think about putting the property into Trust with her and the children as beneficiaries. This isn't foolproof but is more likely to ring fence the asset. Trust law and taxation would apply and it may be more costly in the short term particularly if the property is above the IHT limit.

Not something to be DIYed or skimped on - they need to consult a professional.

Keep_pedalling

ps2659 wrote: »

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 .

The thing about a gift is that is unconditional. She could sell the flat and spend the lot on online bingo and his wishes would mean nothing.

We gifted both our children a hefty house deposit, but I'm sure neither of them would have been very happy if we had tried to put such conditions on it.

tara747

Is the husband the father of the children?

ps2659

tara747 wrote: »

Is the husband the father of the children?

Yes he is.

tara747

Thanks. I just wondered since you referred to 'her children' in post 12.


The others are right, in any case - if they divorce, it will be considered a marital asset by the courts and the default split is 50/50 for all marital assets.

TBagpuss

HappyMJ wrote: »

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.

Unless they both get independetn legal advice, and the agreement has a certificate, signed by each solicitor, confirming that they have had such advice, then it is very unlikely that a court will attach any weight to such an agreement. IF you go down the route of a post-nuptial agreement is is absolutely essential that you both get separate and ndependent advice. DIY won't achieve what you want.

LannieDuck

Isn't this the sort of thing than a trust could be used for? Gift the house to a trust set up in his daughter's name where she gets income from the trust?

However, I freely admit I don't know enough about how trust work to know whether this is correct...

ps2659

LannieDuck wrote: »

Isn't this the sort of thing than a trust could be used for? Gift the house to a trust set up in his daughter's name where she gets income from the trust?

However, I freely admit I don't know enough about how trust work to know whether this is correct...

Has anyone any idea if this could be a solution to get what he wants for his daughter ?

Keep_pedalling

ps2659 wrote: »

Has anyone any idea if this could be a solution to get what he wants for his daughter ?

Yes, just tell him not to be such a pessimistic old so and so, and just give her the flat.

Has he even discussed this with her yet?