Prenups become a condition of the bank of mum and dad

It is becoming increasingly popular when young couples buy a new home to do so with financial assistance from their parents. Parents often help out with the deposit and the amounts involved can be quite considerable. The situations vary from children needing help onto the property ladder to parents helping their children move to a larger home as grandchildren come along.

In view of the high number of relationships that break down, regardless of if they live together as cohabitees or are legally married, there is often a fear by parents as to what would happen to the monies they contributed should the couple separate, for instance would the money end up being lost to the other party?

There are some parents who now insist, before they hand over the deposit, in a case where their son or daughter is to marry their partner that they enter into Pre-nuptial Agreements, which then provides protection to the monies paid into the property. Alternatively, in the event that the couple are cohabiting, then they may require that a Cohabitation Agreement is entered into.

It is clearly easier for a partner to raise the issue of a Prenup or Cohabitation Agreement when they are relying on a gift from a parent, who is insisting on this as a pre condition of the gift being made and this is possibly an unforeseen factor in the rise of Prenuptial Agreements.

However, for Prenuptial Agreements to carry significant weight with a court it is necessary to follow the guidelines laid down by the higher courts in recent cases. Therefore it is most important that specialist advice from a family solicitor is obtained to ensure that sufficient weight is given to the agreement.

For specialistadvice on prenups or cohabitation agreements, please speak to our experienced family department on 0113 320 5000 or by email @email.