So, it is time for destinys â€ž YESâ€œ, and everything is great, and love is upon you… But.. It is good to look forward, and have in mind every possibility that might happen after… letâ€™s say, life hits you and your beloved. Here are some tips for both of you.
- Make prenuptial agreement
Many marriage fights start at the moment when marriage is not even started. At the point of making prenuptial agreement. If that is the case, be sure that you need one! It is the most practical solution if there’s a significant gap between the wealth of the bride and groom. Although in Scotland the prenup is a contract, in England it is not legally binding, meaning that English courts have the power to overrule it. However, the UK supreme court’s decision to uphold the prenup in the case between German heiress Katrin Radmacher and her husband Nicholas Granatino last year suggests that they may be recognised in the future.
- Sorting out the wedding venue
With some places costing a lot of money to hire for the big day, you need to make sure you have a legally binding contract with the venue or supplier so that they and you know exactly what is being provided. Many people choose to have an informal arrangement with their supplier, but this can lead to unexpected costs, or worse, being stood up by your venue before you’ve even reached the altar. â€žHey, whrere is the cake!? Sorry we have not made deal about it. What!!??â€œ Contract, be secure.
- Wedding gifts
Parents often give gifts to their children on marriage. Gifts of up to $ 5,000 by each parent are free of inheritance tax, regardless of whether the parent survives seven years, and grandparents can gift $ 2,500 each tax free. If parents are giving larger gifts, they should consider whether this should go to both child and spouse. Although it may seem mean to only give a present to their daughter and not their son-in-law, if the marriage comes to an end, the son-in-law may end up with an expensive gift the parents would rather he didn’t have.
- Don’t let your marriage be taxing
Married couples can transfer assets between them free of capital gains tax and in some circumstances, it may be sensible to consider transferring income-producing assets to make the most of this allowance. Beware though, in Scotland if an asset owned by one party pre-marriage is transferred to a spouse, it will become matrimonial property and therefore subject to a claim on divorce. This may also affect the outcome of a divorce in England.
- Where to live
Buying a property together is one of the most exciting things to do as a married couple but one must consider how to set up ownership. You can own the property as joint tenants or as tenants-in-common. In a joint tenancy, the partners own the whole property and do not have a particular share in it, while tenants-in-common each have a definite share in the property. As joint tenants, if one spouse dies than the property will automatically go to the other spouse, but owning the property as tenants-in-common means that the will dictates who gets the property, meaning that the spouse may not automatically receive it.