Marlborough Living Jan - Feb 2020
We've got 2020 vision as we look ahead to the new year with fitness and health tips, a wedding guide, meat free recipes, an interview with chef Michael Caines and lots of home inspiration.
We've got 2020 vision as we look ahead to the new year with fitness and health tips, a wedding guide, meat free recipes, an interview with chef Michael Caines and lots of home inspiration.
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
principal is that any agreement reached by the<br />
parties does not oust the court’s power to make<br />
financial orders upon marriage breakdown.<br />
Another option is to loan the funds and retain a<br />
beneficial interest in any property by way of a<br />
declaration of trust, which clearly sets out what<br />
contribution has been made to the purchase<br />
along with other relevant provisions to safeguard<br />
that interest.<br />
An alternative is an interest free loan - the terms<br />
of which can be set out in a detailed contract - or<br />
an equitable mortgage that could be created but<br />
not registered against the property. The problem<br />
with money being given to children, for example<br />
to pay their legal fees, on marriage breakdown is<br />
that these funds are liable to be viewed as soft<br />
loans which are not actually repayable and so not<br />
taken into account when dividing the matrimonial<br />
assets.<br />
How children can help to keep assets<br />
out of the matrimonial pot<br />
Depending on the financial circumstances in<br />
the marriage, inherited and gifted funds can be<br />
ring-fenced out of the matrimonial pot if kept<br />
completely separate from matrimonial assets.<br />
One example is not to pay off a mortgage but<br />
keep an entirely separate investment retaining the<br />
income away from any mingling in family income.<br />
It can sometimes be tax efficient to place funds<br />
into in to a trust for children and/or grandchildren.<br />
This is a complex area and care must be taken<br />
as a matrimonial court will look into and can take<br />
into account the value of the beneficiary’s interest<br />
in a trust. Gifts paid into trusts to grandchildren<br />
are viewed differently. This can be a tax efficient<br />
way forward but tax advice is important when<br />
considering this more complex option.<br />
It is essential that specialist legal advice is<br />
obtained before gifting funds to children. Tax<br />
advice alone is not recommended.<br />
Contact us<br />
For more information on gifting or for<br />
any queries related to matrimonial<br />
assets, contact Maria Mulroe, partner<br />
in the Family law team, at enquiries@<br />
roydswithyking.com or by telephone<br />
on 01672 514 781.<br />
www.marlboroughliving.co.uk | 11
Change language