Contracting Out Agreements / Pre-nup

Contracting Out Agreements are more widely know as ‘Pre-nup’. While parties are legally permitted to contract out of the provisions of the Property (Relationships) Act 1976, care must be taken when drafting a Contracting Out Agreement or ‘Pre-nup’ to ensure it is fit for each individual circumstance. 

A Contracting Out Agreement is most commonly known as a ‘pre-nup’. While the Property (Relationships) Act 1976 allows parties to contract out of the provisions of the Act, care must be taken when drafting a Contracting Out Agreement. As severe as it may sound, it is a fact that your relationship will end, either through separation or death. It is often appropriate that a Contracting Out Agreement is put in place to address not only how property is to be divided on separation, but also in the event of geriatric care or death of a party. Contracting Out Agreements are tailored to fit your individual circumstances and we have significant experience in advising clients as to the appropriate way to contract out of the Act. 

Some key considerations  that we can discuss with you include:

  • Length of your relationship, assets, and debts you have and plan for the future

  • Ways of protecting separate property bought into the relationship – such as inheritances and gifts

  • Effect of the intermingling of assets and income during the relationship

  • Family Trusts including the effect of any bundle of rights held under Trust and the impact of the Trust’s assets with respect to the relationship

  • Property Sharing particularly when purchasing a home together

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