And finally…‘bank of mum and dad’ calls in the lawyers

De NiroThe ‘bank of mum and dad’ has become an increasingly vital resource for today’s generation of first-time homebuyers, but it seems the once informal family agreements are now being drawn-up with strict legal constraints.

According to lawyers, the benevolence of some parents starts and stops with their own flesh and blood and are demanding that their beloved offspring sign a new form of ‘pre-nup’ with prospective in-laws to ensure, should things go south, that the generous parental contribution remains within the family.

The development is the latest in a series of new uses for the pre-nup that were unforeseen by the Supreme Court judges who five years ago granted couples the right to arrange their divorce settlement even before their wedding day.

The ‘bank of mum and dad pre-nup’ joins the ‘infidelity penalty’ – designed to ensure that an unfaithful spouse pays the price in a divorce – and the ‘housework rota’ – which sets out exactly which partner will do which chores.



James Skinner of the Simpson Millar law firm said the acceptance of pre-nups by the courts had prompted a huge rise in interest.

He explained: “What we did not expect to see were parents inquiring about agreements that will specifically secure any future inheritance or financial donation solely for their offspring.”

He added: “They want to ensure any inheritance is left in the hands of their children – not their partners. This is particularly in the case where mum and dad have financially supported their children to get on to the property ladder.

“As parental support becomes invaluable for many first-time buyers, so does demand for parent-sponsored pre-nups.”

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