Protecting assets

[BeingCautious]

Would appreciate some advice. I have a house I own outright. Partner has a larger house with similar amount of equity but still has a mortgage. Looking to cohabit, with both our children, with me and my child initially moving into his house. I would pay towards bills but not his mortgage.

All being well we would then sell both properties to purchase another outright as tenants in common, 50/50.

I have a considerable defined benefit pension whereas he has a derisory pension pot. His income has increased dramatically so he plans to increase his contributions accordingly.

Neither of us have married and this is a consideration however I do not want to risk losing any of my pension. Is pension built up before marriage counted as a marital asset? Is there a way to safeguard this? We are late forties and there will be no joint children. We both want to protect our equity for our children.

I appreciate that I would need to take actual legal advice before making decisions but wanted a general idea of what else we need to consider. Thank you.

Unless you actually marry, pensions would not be considered ‘marital assets’. However, your DP survivors pension could go to your DP if your DC were an adult. They would only receive it if they were still under 18 or in full time education (or disabled and financially dependent on you)

None of the children will be under 18 for much longer, hence planning to move in once they have all finished A Levels. Not as concerned about survivors pensions, more concerned about pension accrued before marriage being ringfenced from becoming a marital asset.

Then don’t marry him.

Pre-nuptial agreement if you marry.

If you don't marry:

1. Nominate whoever you want to receive your pension benefits in the event of your death.
2. Draw up a deed of trust regulating any shared ownership property saying how you should each contribute towards the bills and what to do if the relationsip ends.

Thanks for responses.

@Collaborate how much weight do courts in England give to pre-nups? I know the logical thing is never to marry however it’s something that both of us would want to do.

Ideally we would want something agreeing that in the event one of us dies the other person has so long to remain in the house before it’s sold, to give them sufficient time to grieve and then to sell up but also so our children aren’t waiting too long for their inheritance. Is this quite a common agreement?

A pre-nuptial agreement is not legally binding but, provided certain conditions are met, the courts will enforce them unless it is clearly inappropriate in the circumstances, e.g. there are children and the prenup does not make any provision for them. Even if the courts do decide the prenup is inappropriate, they will still take it into account in determining the financial split.

As well as sorting out a prenup, you need to make a will. That is where you can set out what happens to your property when you die.