Finance Howard Kennedy
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45 So what legal options are available to Jessica?
Prenuptial Agreements Worthless or Worthwhile?
Winners and Losers It’s Child’s Play
Petr Cech to Arsenal. Raheem Sterling to Manchester City. Bastian Schweinsteiger to Manchester United. The summer transfer window has seen some big-name signings. However, if you are planning on marrying any time soon, a prenuptial agreement may just be the best signing you, as a player, make. Lois Langton of Howard Kennedy takes a look at some of the questions clients often ask.
You meet someone. You have children. You may live together. You split up. But how are you affected legally? Lois Langton of Howard Kennedy takes a look at three scenarios.
to do this if they plan on starting a family. Even if Q. What’s the point of having a prenuptial agreement? They don’t count for anything, do they? there is no review clause, there is nothing to stop Wrong! This is a popular myth about prenuptial agreements. If an agreement is properly and freely entered into, with both parties having the benefit of independent legal advice, and the couple understand the implications of what they are signing, there is every chance that it will be upheld.
you and your spouse from updating the prenuptial agreement a few years into your marriage if that is what you agree to do.
Q. Surely prenuptial agreements just aren’t very romantic, are they?
This is something we hear often. There is a changing mentality, however, towards them. Would you not bother taking out a will when you’re Potentially a big difference! In England and Wales, if young because you’re not planning on dying any you divorce and don’t have a prenuptial agreement, time soon?! Would you not bother taking out the starting point for the Courts is to divide all of the life insurance because it seems pessimistic?! Are prenuptial agreements really so different? assets equally between the couple. The Courts have very wide powers to transfer ownership of assets and to order payment of maintenance. A prenuptial Q. I’m not English so surely I don’t need agreement moves away from the principle of sharing an English prenuptial agreement? of assets and looks instead at making sure the needs Wrong again! If you are living in this country, there is a good chance that divorce proceedings can be of the other spouse are met. In particular, it can protect assets and resources that you owned prior to started in England and so it is important that you have an English prenuptial agreement in addition to the marriage. any foreign agreements you may also take out. Q. What difference will a prenuptial agreement make to me?
Q. What if I enter into a prenuptial agreement and then change my mind about what provision I want to make for my spouse?
Lawyers often incorporate review clauses into prenuptial agreements so that you can review them further down the line. Clients are often keen
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Q. I’m already married – is it too late?
If you’re already married, it is too late for a prenuptial agreement but you can have a post-nuptial agreement. They’re pretty much the same except that you enter into them after you’ve married.
Leftt: Lois Langton
Right: Fiona Hinds
There have been too many high-profile divorces in the media in recent years. 33% of footballers get divorced within 5 years of retiring. A prenuptial agreement can help keep your personal life away from the press so that the only headlines you make are on the back pages.
33% of footballers get divorced within 5 years of retiring
Alan
A
lan owns his own house and his weekly salary is £15,000 (before tax). He meets Stacey and 6 months later, she moves into his house with him. 5 years later, they separate. They haven’t had any children together. What claims can Stacey make against Alan as a result of their relationship ending? Couples who aren’t married, or haven’t entered into a civil partnership, often think that they have the same rights as married people. In fact, the notion of a “common law marriage” is simply a myth and carries no weight at all in law. There is often an assumption that the law provides a “fair” financial remedy if a cohabiting relationship breaks down. The truth is that cohabitants do not have access to the same financial remedies that are available on divorce and have no financial claims against each other arising from the fact of their cohabitation. There may be some limited legal avenues that Stacey could pursue but she will not be able to claim a share of Alan’s house or of his income just because they have had a relationship.
John John has his own house and his weekly salary is £100,000 (before tax). He meets Jessica and 6 months later, she moves into his house with him. A year later, they have a baby boy, Alex, and 18 months later, a baby girl, Lily. 2 years later, John and Jessica separate. What claims can Jessica make against John as a result of their relationship ending? Cohabiting couples who have children and separate still don’t have any remedies available to them simply because they once lived together. But having children does open up the door for Jessica to make claims for the benefit of Alex and Lily. Ultimately, as the children’s mother, Jessica will benefit from those claims.
Property – she can ask the Court to order that John
purchases a property where she and the children will live. Jessica will not own that property (unless John agrees to that). It will either be held on trust for the children’s benefit or when both children are 18 (or finish their education), the property will pass back to John’s control and ownership. Whilst Alex and Lily are still minors, however, Jessica will be able to live in the house with them. Maintenence – she can ask the Court to order that John pays regular monthly maintenance for the children. Maintenance is often interpreted broadly so that it covers expenses that will also benefit Jessica as well as the children. Lump Sum – she can ask the Court to order John to pay her a lump sum of money to meet some specific expenses, such as for the children’s education. Legal fees – she can ask the Court to order that John pays the legal fees that she incurs in making the claims against him. Shortly after splitting up with Stacey, Alan meets Emma. Their relationship only lasts for a few weeks and Emma doesn’t move in with Alan. However, she falls pregnant and they have a baby boy.
Can Emma make any claims against Alan? As Emma and Alan have had a child together, Emma has the same legal options available to her as Jessica has, even though she and Alan have only had a short relationship and have never lived together. Relationships and children are a social reality but a legal minefield. There have been repeated calls for this area of the law to be reformed. However, there is no sign of any change yet and in the meantime the value of getting good legal advice so that you understand where you stand is vitally important.
Emma
Lois is the joint Head of the Sports Individuals Group at Howard Kennedy LLP, a leading London law firm. Howard Kennedy acts for a significant number of sportsmen and women and we understand the sports industry from both a legal and commercial perspective. We are also here to help you with issues that affect your personal life. For further information please contact Lois Langton and Fiona Hinds: Lois.Langton@howardkennedy.com Fiona.hinds@howardkennedy.com
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