Julian Knight: Why I'm wedded to this shake-up for the pre-nup

The current deals that couples make before they marry aren't worth the paper they're written

It is very strange that an agreement entered into by two adults of sound mind is allowed to be ignored by the courts.But that is the case with pre-nuptial agreements in this country.

As a result, divorce lawyers are not able to advise their clients whether the pre-nuptial agreement they have signed is actually worth the paper it is written on. It really is up to the whim of the judge on the day. Now the Law Commission has advised Parliament that a new law is needed to make pre-nups binding, taking out the courts’ wriggle room.

Many have the idea that pre-nups are a rich persons’ ploy and certainly the landmark case of German heiress Katrin Radmacher, who had her pre-nup upheld in 2010, adds credence to this idea.

However, pre-nups could help to both ease separation and ensure that individuals enter into matrimony knowing exactly where their finances stand.

Often the ignorance relating to finance and marriage and relationships is startling. For instance, very few people I encounter know that a will made before marriage is voided by the nuptials.

As for unmarried people living together, there is still a widespread belief that there is such a thing as common-law wife and husband rights – there is no such thing (although some campaigners have called for a change in the law).

I know someone who was married but recently widowed and is now facing legal action from the parents of the deceased husband over an alleged sum given to their son prior to the marriage used as a deposit for a home.

The rights and wrongs of the case don’t concern me here, but if a pre-nuptial agreement had been in place then perhaps some account could have been taken of this money or at least it would have reinforced that the cash was for both of their benefits rather than just the deceased son’s.

 Pre-nups could also help to flag up the need for couples to have a will drawn up to avoid just such disputes if the worst happens.

However, there are dangers in pre-nups as in any legal document, and one of these is in the drawing up of the document.

I am seeing an increasing number of horror stories about so-called will- writing firms that charge seemingly cheap prices for their work but either forget crucial aspects of the law – such as that beneficiaries can’t be a signed witness to a will – or even write themselves into a will as an executor as a means to extract huge fees in the future.

 If pre-nups move from being a rich persons’ option then let’s avoid the pile ’em high, sell ’em cheap  approach of some less scrupulous will writers.

All in all, though, clearing the legal path for pre-nups is a real positive.

Dotty over dotcoms again?

The huge valuation given to AO is starkly reminiscent of the dotcom boom of the late 1990s. AO, an online electrical retailer, is now within touching distance of Dixons’ market capitalisation. This is despite the fact that AO only enjoys a small fraction of Dixons’ turnover.

Although AO is a much sounder proposition than the now infamous Boo.com, the collapse of which  signalled at least the bursting of the dotcom bubble this side of the  Atlantic, I am becoming increasingly worried by the market’s valuation of all things online.

Of course online should spearhead a company’s strategy, as ASOS shows us, but when you look at share prices racing away from a company’s numbers it is a little worrying.

Fortunately, in one crucial way it doesn’t feel like 1999 all over again and that is because small investors are relatively absent from all this.

Back in 1999 technology funds were receiving such an enormous inflow of cash from private investors wanting to make their fortune from dotcom firms that managers could barely find things to do with all the cash. One company had so many ISA applications that it hired a helicopter to carry them from Canary Wharf to their head office.

The technology fund manager I spoke to this week said we are still a long way from that. But perhaps when that starts to happen is the time to head for the market exit?

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Collections Agent

    £14000 - £16000 per annum: Recruitment Genius: This company was established in...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

    Reach Volunteering: Trustees with Finance, Fundraising and IT skills

    Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

    Day In a Page

    Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

    ‘Can we really just turn away?’

    Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
    Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

    Nine of Syria and Iraq's 10 world heritage sites are in danger...

    ... and not just because of Isis vandalism
    Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

    Girl on a Plane

    An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
    Markus Persson: If being that rich is so bad, why not just give it all away?

    That's a bit rich

    The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
    Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

    Coleman on course to end half a century of hurt for Wales

    Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
    Rugby World Cup 2015: The tournament's forgotten XV

    Forgotten XV of the rugby World Cup

    Now the squads are out, Chris Hewett picks a side of stars who missed the cut
    A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

    Britain's Atlantis

    Scientific study beneath North Sea could revolutionise how we see the past
    The Queen has 'done and said nothing that anybody will remember,' says Starkey

    The Queen has 'done and said nothing that anybody will remember'

    David Starkey's assessment
    Oliver Sacks said his life has been 'an enormous privilege and adventure'

    'An enormous privilege and adventure'

    Oliver Sacks writing about his life
    'Gibraltar is British, and it is going to stay British forever'

    'Gibraltar is British, and it is going to stay British forever'

    The Rock's Chief Minister hits back at Spanish government's 'lies'
    Britain is still addicted to 'dirty coal'

    Britain still addicted to 'dirty' coal

    Biggest energy suppliers are more dependent on fossil fuel than a decade ago
    Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

    Orthorexia nervosa

    How becoming obsessed with healthy eating can lead to malnutrition
    Lady Chatterley is not obscene, says TV director

    Lady Chatterley’s Lover

    Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
    Farmers in tropical forests are training ants to kill off bigger pests

    Set a pest to catch a pest

    Farmers in tropical forests are training ants to kill off bigger pests