A Contracting Out Agreement is, simply put, an agreement between parties setting out who owns what and how things should be divided in the event of separation.
The reason Contract Out Agreements are a good idea is that in the event you separate without one, equal sharing rules will apply. The most common example we see where this becomes an issue is when couples purchase a house together and the deposits are significantly different. A Contracting Out Agreement can outline what the initial deposits are, so that in the event you separate you will get back what you have initially put into a property.
Generally things like family heirlooms will remain your property, but if you transfer the likes of an inheritance into a joint bank account there is a risk that this will be required to be shared equally in the event of separation.
To formalise a contracting out agreement, both parties will need to take independent legal advice from a solicitor who will explain the agreement and sign that they have explained the details to you.
Get in touch to discuss whether a contracting out agreement might be right for you.
