Insights

Future proofing: Insurance policies for modern-day relationships

When we start a new job we get a contract, when we book a holiday or buy a car we get terms and conditions and take out insurance – so should we be doing the same when we start a new relationship? Setting out the financial arrangement and expectations within a relationship if things don’t work out as we plan.

With more people living together and starting families but choosing not to get married, or marrying much later in life, it’s important to know the financial consequences if the relationship does not work and they separate and how couples can ‘futureproof’.

There are so many ways to prevent stressful costly court fees when both separating and divorcing, below are some examples:

• Having a cohabitation agreement confirms the arrangements between a couple at the outset of when you start living with a new partner, which establishes a clear understanding if separation is to occur.
• Having a pre or post nuptial agreement if you are planning to marry or have recently married and want to protect your finances and other assets.
• A declaration of trust when you purchase a new home with your partner.
• Making a will.

These options can seem very unromantic but can prevent so much upset in the future. It is always best to plan for the worst and hope for the best in these situations while ensuring financial security for yourself if things do not work out.

Bethan Chaffey – Trainee Solicitor