How should you record your assets when entering into a marriage?

In some divorce cases where one or both parties came to the marriage with significant wealth, a perfectly justifiable argument may exist for a large financial contribution at the outset of their relationship to be taken into account, or even in some cases ring-fenced.

If that contribution cannot be proved however and is not accepted, there is a very strong risk that the court will approach the case on the basis that the contribution never occurred.

How to record and protect assets on marriage

Such a contribution is easily demonstrated if a prenuptial agreement has been entered into. These agreements require financial disclosure from both parties enabling a ‘snapshot’ to be taken of each spouse’s financial position at that time.

It is something that can be referred to and relied upon in the event of divorce to demonstrate what each person had when the marriage commenced.

It is not always possible or appropriate to agree to enter into a prenuptial agreement however. What should a person do in those circumstances if they wish to create a snapshot of their financial position at that time?

The solution is to create a Voluntary Statement of Means.

It does not need to be disclosed to your fiancé(e) but would instead be prepared and retained by your solicitor, just like a Will or deeds to your house. It would only be referred to if a divorce ever occurs. All being well, it will never need to be relied upon to. If it does however, the security of knowing that you have a document contemporaneously prepared setting out the detail of what you had when the marriage commenced will be a welcome relief.

 

For more information on inheritance, divorce, pre and post-nuptial agreements and business assets in divorce, please see our videos: