Prenuptial agreements: All you need to know…

Lawpack on May 12, 2020

Prenuptial agreements are recognised in many countries, but in the UK they have a history of being seen as unromantic by couples about to embark on a life together.

Yet prenuptial agreements are increasingly being taken into consideration by the English courts when they are looking at financial settlements on divorce.

Find out more on when to use a prenuptial agreement, what a prenuptial agreement does and how to make it legally binding.

What is a prenuptial agreement?

A prenuptial agreement sets out the terms upon which you and your partner will separate or divorce. As you make a prenuptial agreement before you marry, the terms are agreed when there is no bitterness between you. So the costs of negotiating a prenuptial agreement are usually far less than the costs of negotiating a divorce settlement, because all the negotiation has already been made.

Want to make a prenuptial agreement? Use our prenuptial agreement download today and save £££s!

What can we include in a prenuptial agreement?

A prenuptial agreement should only deal with financial matters, and not with any personal issues regarding your relationship. If you include personal matters, the court may consider that some of the non-financial clauses render the whole of the agreement void.

What about children?

You should not include arrangements relating to the care of, and contact, with children in the prenuptial agreement. The courts will not bind a child into an agreement entered into by its parents.

A prenuptial agreement, which aims to set in stone arrangements for a child is unlikely to find favour with a judge, especially if it was agreed years before the separation or divorce.

Any agreement you may wish to enter which regulates the arrangements for your children, or other non-financial matters should be put into a separate document and not in the prenuptial agreement itself. This is to protect you from a situation where a judge finds the whole of your agreement unenforceable.

There is no special form for such a document; any simple written agreement setting out your arrangements will be sufficient for the court as evidence of your intentions, should you divorce or separate.

Want to make a prenuptial agreement? Use our prenuptial agreement download today and save £££s!

Is a prenuptial agreement legally binding?

As yet, not in every case, but they do hold great sway with the courts. A recent ruling by the Supreme Court over the German paper industry heiress Katrin Radmacher and her husband has given greater legal status to prenuptial agreements in divorce cases.

Since this judgment, it’s likely that a prenup will be binding providing that both parties have enough information about the other’s finances, and that they both fully understand what they are entering into and what the implications are. There will have to be some fundamental aspect of unfairness about the agreement for a court to decide that it should not be upheld.

Also, the Law Commission is drawing up a draft Bill by 2012 looking into making prenuptial agreements legally binding so it’s likely that prenuptial agreements will have official legal status in the next couple  of years.

Find out more about prenuptial agreements becoming legally binding here.

Do we need to take legal advice when making a prenuptial agreement?

Both of you should take independent legal advice before entering into a prenuptial agreement, as it will be easier to persuade a judge to take the prenuptial agreement into account in any divorce proceedings. This means that you should each get advice from separate lawyers.

When should we make the prenuptial agreement?

The marriage ceremony should take place at least 21 days after you both sign the prenuptial agreement. If you enter into the prenuptial agreement less than 21 days before the marriage, it is less likely to be persuasive on a judge, should you get divorced. A short time period between the making of the agreement and the ceremony can be construed as evidence of duress. This can invalidate the agreement.

Ideally, give your partner several months to consider and discuss the agreement with you. If you don’t get married within six to 12 months of signing the prenuptial agreement, you should draw up and sign another one

Want to make a prenuptial agreement? Use our prenuptial agreement download today and save £££s!

Does the prenuptial agreement need updating?

It’s recommended that you revise any prenuptial agreement at certain key points in your relationship to ensure that it’s up to date. You should revise it:

  • At regular intervals, for example, every five years.
  • If children are born.
  • If one of you becomes disabled or unable to work.
  • If one of you becomes redundant or unable to find work.
  • If one of you retires.
  • If one of you inherits any valuable assets.

This means that when one of the above events occurs, you and your partner should renegotiate the relevant terms of the agreement and enter into a new one (i.e. a postnuptial agreement). It doesn’t need to be a complete re-draft , but it should refer to your original prenuptial agreement.

Do you want to protect your assets? Find out if a making a prenuptial agreement is right for you…

Want to make a prenuptial agreement? Use our prenuptial agreement download today and save £££s!

With Lawpack’s prenuptial agreement you can complete the legal form yourself before taking legal advice and save £££s in solicitor’s fees.

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Published on: October 26, 2010

Do I really need a prenup?

Lawpack on May 12, 2020

Are you getting married and have assets you want to protect? Or have you been married before and are worried about going down the aisle again? Then have you thought about making a prenup?

More and more couples are making prenups before entering into marriage. Recently there has been a dramatic rise in the demand for prenups and, particularly, for second marriages. Recent research, carried out for the law firm Mishcon de Reya, found that 17% of men under 45 now have a prenuptial agreement.

Why are prenups becoming so popular?

High-profile divorces, such as McCartney and Mills, have brought prenups to the fore as now ordinary people are concerned about losing a large part of their assets in a settlement.

Partly this is because divorcees are more wary of getting married for a second time, plus they’re better off so they feel that they have more to lose. Adult children also suggest a prenup to protect their inheritance from their new step-parent.

Often couples use prenups if there is a disparity in wealth, say, if one partner earns a lot more than the other, or one partner has a house and the other doesn’t, or one partner has received an inheritance that they want to protect.

Want to make a prenup? Use our prenup download today and save £££s!

Will a prenup protect your assets if your marriage gets into trouble?

Many people view making prenups as a waste of time and an unromantic thing to do, but although they are not officially legally binding, at present, they are a persuading factor if a case goes to court.

If both parties have taken legal advice, the prenup has been signed at least a month before the wedding, the finances have been disclosed and the contract is deemed fair by the judge, the prenup is likely to be seen as legally binding.

In America and most of Europe, prenups are legally binding, but in the UK we’re playing catch up. However, a recent ruling by the Supreme Court over the German paper industry heiress Katrin Radmacher and her husband has given greater legal status to prenuptial agreements in divorce cases.

Plus the Law Commission, the government’s law reform watchdog, is looking at the circumstances in which courts should uphold prenups between those planning to marry or become civil partners.

The Law Commission aims to draw up a draft Bill by 2012, so prenups should be legally binding within the next couple of years.

Find out more about prenups becoming legally binding here.

Mike Hamlin, partner at law firm Slater Heelis Collier Littler, based in Sale, Greater Manchester, says that although prenups can be criticised for going against the traditional values of marriage, he believes that they simply address issues and protect the interests of both parties:

“Should the marriage end, there would be no need for bitter legal disputes over the dividing of assets” he said.

Assets that are acquired before the marriage and which have been disclosed have an increased chance of being protected if the marriage ends in divorce.

Want to make a prenup? Use our prenup download today and save £££s!

What terms should you include in a prenup?

If you’re making a prenup, it’s advisable that you don’t hold assets in joint names. If you’re going to purchase property in joint names, it’s wise that you register the property as ‘tenants in common’ and that you specify each party’s entitlement.

Find out more about how you should be buying property together here.

Remember that if you are planning to have children, it’s important that this is mentioned in the prenup because a child can change the parameters upon which the prenup was entered into. In fact, it’s always wise to revise your prenup, should you have any children since the making of the prenup.

Read more on when you should revise your prenup here.

Want to make a prenup? Use our prenup download today and save £££s!

With Lawpack’s prenup you can complete the legal form yourself before taking legal advice and save £££s in solicitor’s fees.

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Published on: October 25, 2010

What is a deed poll?

Lawpack on May 12, 2020

A Deed Poll is a legal form. Nothing more, nothing less. It is a legal form that binds you to a defined course of action. And that is to change your name.

That is all a Deed Poll is. A legal form to officially change your name.

Technically speaking ‘Deed Polls’ can be used for other purposes. But in popular usage a Deed Poll simply means a legal form that is used to officially change your name.

If you want to get really ‘legal’ you can say that a Deed Poll used to change your name should be called a ‘Deed of Change of Name’. But we’ll just call it a Deed Poll (it makes things simple).

  • Use our Deed Poll Kit to officially change your name right now!

 

What is on a Deed Poll?

A Deed Poll must contain just three statements. And you must ‘commit’ to these.

  1. To stop using your former name
  2. To use only your new name and to use your new name at all times
  3. To request that all persons use your new name only

You need to sign the Deed Poll. You need to date the Deed Poll. And you need to have your signature on the Deed Poll witnessed.

And that’s it! You have changed your name officially by Deed Poll.

  • Use our Deed Poll Kit to officially change your name right now!

 

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Published on: October 4, 2010

Government announces plans to boost working from home

Lawpack on May 12, 2020

This week David Cameron announced legislative changes which will make running a business from home simpler.

The measures to help those working from home include the following:

Business rates

Guidance for new business rates will be created which will clarify that, in the majority of circumstances, businesses being run from home will not attract business rates. It can be a major concern for homeowners that if they start to set up a small business from home, then they may become liable to pay business rates. This is usually not the case.

Running a business from a rented property

New laws will be introduced to make it easier to run a business from a rented home. Currently, some tenants experience problems setting up a business from home as their tenancy agreement forbids a business being run from the property. A new-style tenancy agreement will be made available for landlords, so that landlords can allow their tenants to run a business from home without it undermining the tenancy agreement.

Planning permission

Planning guidance will be revised to make it clear that planning permission isn’t normally needed for running a business from home.

1 in 10 residential properties house a home business

The government’s announcement follows research by the Department for Business, Innovation and Skills (BIS) and Enterprise Nation. According to government figures, 2.9m businesses are run from home and contribute £300bn to the UK economy.

When discussing the new measures David Cameron said, “I want us to be a nation of entrepreneurs that really respect entrepreneurialism and enterprise, something that we imbue in young people in our schools. I want this to be the best country in the world to start, to run, and to expand a new business. We are still some way away from that.”

The government figures suggest that around 70 per cent of new businesses start off in the home. Cameron wants that fact to be appreciated and encouraged:

“Sometimes when people think of home business they think of some cottage industry on the edge of the economy. 70% of new businesses are home businesses – the scale is immense.”

Further legislative changes

Business Minister Matthew Hancock also mentioned that further law changes are to be looked at, including  enabling home business owners to offer apprenticeships.

Help from Lawpack

Lawpack’s Working from Home Kit can help you with the practical and legal issues when you’re starting up a business from home. It includes expert advice on how to comply with health and safety legislation, plus it outlines the legal obligations involved, from getting insurance to paying council tax.

Published on: August 18, 2014

Why starting a joint venture is a great way to success

Lawpack on May 12, 2020

The recession that is currently plaguing the UK brings with it opportunities to be innovative, creative and to ultimately make new businesses work in the specific financial environment the country finds itself in right now.

While some industries and markets are understandably suffering significantly in the midst of the economic downturn, there are others that provide wonderful chances to succeed. As such, it could be the perfect time to start thinking about launching your own business. However, rather than diving in headfirst all alone, it can pay to set up a joint venture with a friend, family member, associate or simply somebody with a similar business plan to your own.

Of course, the question you are sure to be asking yourself is why should you give up 100 per cent control of your fledgling business and share the rewards with somebody else? Well, when you think about it, there are numerous advantages to pairing up compared with going it alone.

Firstly, the capital you have available to you as a duo will be much larger. Rather than relying on your own savings and funds, you will have somebody else to contribute. The result of this is that you are in a position to spend more heavily to get things up and running. Whether you want to buy new equipment, pay staff or splash out on an advertising campaign, it all costs money and having as much as possible during the expensive start-up period is a massive bonus.

On the back of this, you will incur less risk when starting a joint venture as opposed to a solo business. Understandably, the profit will be halved between you and your business partner, but on the other hand you do not have as much to lose.

A particularly good idea can be to team up with somebody or a business from another sector, ideally another country. This will hugely increase your marketing potential and immediate audience, as you can launch in more than one area simultaneously.

By working with your partner, you will also find you benefit from his or her ideas and knowledge. Should you set up a business on your own, you might become set in your ways. It may come as a shock, but your plan is not always the best one, so having somebody else to run things past who contribute their own suggestions is a shrewd move.

You might even find that your talents lie in different areas. While one of you might be talented when it comes to book-keeping, the other could well be an advertising guru. Straight away, these are vital positions that you can each fill rather than having to employ somebody else.

No option is likely to tick every single box for you, but as a relatively low-risk and beneficial plan, thinking about a joint venture is surely a good move. So make your first steps towards a joint venture today and benefit from its numerous and substantial advantages sooner than you think.

For more information, you can acquire our Joint Venture Agreement, bringing you one step closer to setting up a business in partnership with another person or company.

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Published on: July 31, 2012

How to create a business partnership agreement

Lawpack on May 12, 2020

One of the first steps you are best advised to take when entering into a business partnership is drawing up a business partnership agreement.

This applies to businesses operated by two or more parties and although it can be drawn up at any stage during the company’s lifespan, it is best written before problems or conflicts arise.

How a partnership agreement helps your business

A business partnership agreement sets out the provisions surrounding profits and shares and what percentage each partner takes. It further outlines each party’s responsibilities so that you are covered when a dispute emerges.

It is in addition to the Partnership Act 1890, which is a one-size-fits-all approach to partner protection. Under this Act, all partners are entitled to share the profits equally. This may not suit a company where one party has invested more in the project than the other.

Another stipulation of the Act is that all partners are jointly liable for mishaps incurred by the business. This is again problematic where one party incurs more detriment than another.

It further states that any party can terminate the partnership at any point just by giving notice to other relevant parties and the business partnership is dissolved if a partner dies.

Similar provisions cover how much say each party has in the running of the company and, as such, it becomes increasingly clear why this Act can be too general for many companies.

Meanwhile, a business partnership agreement gives you the freedom to determine who is responsible for what, and how much profit each interested party is entitled to.

Under this agreement, you also have the opportunity to decide when and how profits are paid according to what suits the needs of all the interested partners.

It also helps you determine what will happen to the company if one party leaves, while taking into account who should take the brunt of losses, where necessary.

How to draw up a business partnership agreement

The first step in drawing up a business partnership agreement is deciding upon a name for the company, before which you should ensure that the name is not already taken.

Next, you must outline who will contribute cash, property or services to the company before it opens. It is at this point that you will decide what ownership percentage each party will have.

You must then decide if profits will be divided according to the percentage stake each partner has in the business. Consider which party, perhaps all, will be entitled to a regular draw, or whether profits will be handed out at the close of the financial year. This is of particular importance because profit is an area where disputes often occur.

If you want to counteract the stipulation in the Act that says any partner can bind the partnership without the consent of the other parties, you must put this in the agreement. Otherwise, the rule stands.

Decision-making is paramount in business and just what constitutes a big or small decision can be an ambiguous process. As such, your business partnership agreement should make clear what big and small decisions are, as well as how decisions should be reached. You might, for instance, decide unanimous decisions are appropriate for bigger matters, while each party can take the initiative on smaller issues.

Management duties have to be met and just who takes on which responsibility is important to outline. It may seem obvious who takes care of customers, but it is still best to put this in your agreement to cover all bases.

The agreement should also determine an admission process for new partners, as well as detailing the process for the departure of a party. The latter should include a reasonable buyout scheme.

Lastly, when a problem does arise, you need to decide what the best tactic for overcoming it is. As such, set out in your agreement whether arbitration or mediation should be employed to avoid going straight to the courts.

Get your business partnership in writing easily with Lawpack’s solicitor-approved business partnership agreement.  ADNFCR-1645-ID-801216666-ADNFCR

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Published on: November 21, 2011

Conditions ‘favourable’ for setting up a UK company

Lawpack on May 12, 2020

by Daniel Jones

Current conditions in the UK make now a great time to set up a limited company and invest in business, Wisteria Chartered Accountants has suggested.

With unemployment on the rise, now is the ideal time to set up a business and become self-employed, while also benefiting from the skills of those who are out of work.

The company also proposed that tax schemes in the UK create favourable conditions, with national insurance exemptions up to £5,000 benefiting those who start operations outside London and the south-east.

Nick Tagg, director at Wisteria Chartered Accountants commented: “The new national insurance scheme brought in is potentially highly beneficial to anyone who takes advantage of it.

“The downside is that these benefits don’t extend to the south-east, where unemployment is still very significant.”

Latest unemployment figures show that 2.51 million people in the UK are currently out of work, meaning the jobless rate stands at 7.9 per cent.

  • Limited Company News: Lawpack’s solicitor-approved Limited Company Formation Kit includes template forms and expert guidance to help you form a limited company easily.

 

Published on: October 5, 2011

Homeworkers need health & safety assessments

Lawpack on May 12, 2020

by Sarah Ashcroft

Businesses have been reminded that they may be held responsible for the wellbeing of employees who work from home.

Bar Huberman, exployment law editor at XpertHR, said employers are obliged to take reasonable care of the health and safety of their employees, and this home workers enjoy nearly the same level of legal protection of those working at the company’s premises.

Employers will need to establish that the home environment is at the very least suitable for work.

“Suitability includes things like space, workstation, monitor and arrangements for storage, and it might, depending on the role, involve sending a health and safety inspector to the employee’s home,” added Ms Huberman.

This employment law advice may be particularly pertinent during the run-up to the 2012 Olympic Games, when tens of thousands of City workers are expected to be asked to work from home or work flexibly to avoid road networks becoming over-congested at peak times.

  • Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: August 23, 2011

Working from home ‘to become more popular’

Lawpack on May 12, 2020

Demand for advice on working from home could soon be on the rise, as one expert predicts a boom in the employment trend over the coming years.

Matt Oakley, chairman of the British Council for Offices research committee, said that home working is a good way for companies to hold on to their most valuable staff.

“It is more about employers giving their employees the opportunity to work from the best possible place, whether it be at a desk, from one office or a number of offices,” he explained.

Mr Oakley pointed out that that there will be more “flexible and multi-locational workers” as the amount of employees expected to be at their desks five days a week is in decline.

Liz Morris, director of consultancy and training at Working Families, recently suggested that flexible working conditions are just as important for bosses as they are for their workers.

  • Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: July 25, 2011

Youth ‘recognise benefits’ of flexible working

Lawpack on May 12, 2020

Younger generations may be likely to go in search of business advice for working from home, as they realise the benefits of flexible arrangements.

This is according to director of research at the Telework Association Peter Thomson, who explained that people are fed up of the daily commute to their place of employment.

He continued: “This is a generation who are green-conscious, who are taught environmental studies at school, and are quite rightly saying ‘Hang on – you, my parents’ generation, have polluted the planet’.”

Mr Thomson emphasised that people are therefore looking to cut down on travel and carry out as many tasks as they can without having to leave the house.

His comments follow the release of the CBI/Harvey Nash Employment Trends Survey, which found that 96 per cent of employers offer some sort of flexible working.

Many of them revealed that this has helped to boost their employee relations.

  • Business News from Lawpack: Providing expert legal advice for employees working from home.

 

Published on: June 28, 2011