3 Ways to Protect Your Family Wealth during Divorce

The divorce laws in the UK allow estranged couples to divide their matrimonial assets. However, the increasing number of divorces in the country is making parents nervous about their family assets. People don’t want their heritage to fall into a person’s hand who is not even their blood relative.

Taking some proactive steps can help you take control of your financial arrangements should your relationship end. These include:

Prenuptial agreements

Prenuptial agreements are a great way to protect your family’s wealth. These allow you to keep any gifts or inheritance given to you by your parents and removes them from the list of matrimony assets. However, if you haven’t been able to set a prenuptial agreement before marriage, you can set up a postnuptial agreement that serves the same purpose.

Loan agreements

If your parents loaned you money to buy the house you currently live in, make sure you get a signed contract that spells out the conditions of the loan. When you have something in writing, persuading a judge can become easier.

Trusts

Setting up a trust to preserve wealth for future generations is one of the most effective ways of saving your family wealth during a divorce. The trustees own the assets held in the trust but they act on the giver’s wishes. Since the trust is discretionary, the trustee decides which beneficiary receives what, where and how much.

However, the family court can make an order to vary the trust if it finds out that it constitutes a nuptial settlement. Furthermore, the court is also equipped to challenge the validity of the trust if it finds a technical problem with its creation.

Look at all options before making a decision

It’s crucial that you study all options to ensure your property’s safety. At Wembley Solicitors, we have extensive experience in guiding parents and families in financial and divorce matters. We also provide legal assistance in pedestrian accident claims, school bus accident claims, and child custody and immigration cases in Wembley. Connect with us for a free consultation session.