This year, the Bank of Mum and Dad is apparently helping out in a quarter of UK mortgages. A study by Legal and General (reported here) suggested parents will be lending £5 billion in 2016 to help their children with a deposit on a first property.
There is a knock on effect to this, which was reported in the Daily Mail this month. Parents who have invested in their children’s homes are driving growth in prenuptial agreements as they seek to protect their investment in the event of divorce.
The result is that where previously prenups were seen as the preserve of people with considerable wealth, we are now seeing a much wider spectrum of interest.
I have looked at this phenomenon and how best to ring fence ‘non-matrimonial’ assets in an earlier article. It is important to note that because prenuptial agreements remain legally unenforceable in England Wales, it is not possible to make a binding agreement which cannot be interfered with by the court in the unhappy event of a divorce. However, ways to ensure the best chance of a prenup or postnup being upheld are also discussed in the article.
Family Law Partner
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