Andersons News & Events

Rising land prices have led to an increase in the number of farmers drawing up marital agreements to protect property that may have been in their family for several generations.

There's been a similar trend among directors anxious to protect their businesses.

Marital agreements such as pre-nups or post-nups set out in advance what should happen if the marriage ends in divorce. They can cover a wide range of topics but mostly they describe how the couple's money should be divided if they separate.

The price of agricultural land has doubled over the last five years to an average of £6,000 an acre. It means a divorce settlement could be much higher now than in the past.

To fund such a settlement, farmers could face the prospect of having to sell some of their land, or trying to borrow money at a time when banks are reluctant to lend.  Either alternative could affect the viability of the business.

The answer for many farmers is to negotiate agreements that are fair to both sides without jeopardising the value and integrity of the inherited family property.

There has also been an increase in the number of people from other professions using marital agreements, particularly among company directors. Like farmers, many people running family businesses don't want to see the firm's viability threatened by money being taken out to fund a divorce settlement.

Many business owners are also asking their children to draw up pre-nups. This is seen as a way of protecting family interests many years down the line after the children have inherited the firm.

Some companies are urging all their directors to draw up agreements. They don't want to find that a director suddenly has to sell his or her interest in the business because it could be very damaging and destabilising – especially in difficult trading conditions like those we're experiencing now.

Another reason for the growing popularity of marital agreements is that they've been put on a firmer legal footing following the much publicised case involving German heiress Katrin Radmacher and her former husband Nicolas Granatino.

Until then, agreements would be taken into account by the courts but they were not binding. In the Radmacher case, the Supreme Court ruled that although the courts were not bound by such agreements, they should generally be considered binding as long as they are fair and entered into freely by both husband and wife.

It means both parties can be confident that if they enter into a pre-nup that is fair, and both disclose all the relevant financial information in advance, then that agreement will be upheld by the courts. This has convinced many people who were previously sceptical that it is now worthwhile to draw up a marital agreement.

Please contact Angela Maxfield if you would like more information about pre-nuptial agreements or any aspect of matrimonial and family law.

A man has been awarded a share in a £400,000 barn he helped to convert with his former partner.

The couple had started living together in 1986 at a farm bought by the man. They remained there until their relationship broke down in 1996. However, the partner remained on the farm and used it to run a cattery and kennel business.

The couple had two children together. They kept in touch and continued to see each other. The man hoped they would be reconciled and resume living together. In 2006, he transferred the farm's derelict barn to his former partner and she became the registered owner.

He did some repair work on the barn and contributed about £65,000 to its conversion. It was later sold for £400,000.

The man then claimed a share of the profits, saying that he had made a significant contribution to its conversion in the belief that he and his former partner would resume living together. She denied this and said that the payments were purely in recognition of her contribution to the family.

The court ruled in favour of the man. It held that the contention that his contributions towards the conversion were meant simply as gifts could not be accepted. The money he spent on the barn represented a significant part of his assets and he clearly expected that it would become his home.

His former partner had encouraged him to make the investment, knowing that it was not a gift and that he expected to live in the property.

The court held that the man should be granted a 25% interest in the barn.

Please contact Angela Maxfield if you would like more information about the issues raised in this article.

The number of County Court Judgments (CCJs) against businesses rose by nearly 10% in the first three months of this year.

The Registry Trust, which compiles the figures, says there were 34,602 CCJs against businesses in England and Wales in the first quarter. That was a rise of 9.8% on the final quarter of 2011.

The total value of the judgments in the first three months of this year was £151m. The figure for the previous quarter was £143m.

Meanwhile, figures from the Insolvency Service show that there were a total of 4,303 compulsory liquidations and creditors' voluntary liquidations in England and Wales in the first quarter of this year.

That was an increase of 0.2% on the previous quarter and an increase of 4.3% on the same period last year.

The figures show that many firms are continuing to struggle in the current economic downturn. Businesses need to monitor their credit control carefully to ensure their customers and clients pay on time. Failure to do so can lead to cash flow problems that can cripple otherwise profitable companies.

Please contact Faizal Essat if you would like more information about the issues raised in this article or any aspect of credit control and debt collection.

Andersons Solicitors have agreed terms to relocate several of the firm's legal teams to serviced offices at Cumberland House in Nottingham.

The firm will retain its flagship building at 40 The Ropewalk in Nottingham which is synonymous with Andersons Solicitors 60 year tenure as legal advisers to businesses and individuals in the Midlands. The firm also has offices in Leicester.

The move will see Andersons Solicitors dispute resolution and family law teams relocate to the Cumberland House site. The firm will occupy the second floor of the 23,000 sq. ft. office space which has been refurbished to Grade A Standard.

Cumberland House is situated in the professional district of Park Row just off Maid Marion Way in the city. The building also has impressive environmental credentials including eco-friendly lighting.

Andrew Kelly, Andersons Solicitors Managing Partner, commented: "We're delighted to have secured office space at Cumberland House which reflects our plans to continue growing as a business and to cement our position in the new environment brought about by the Legal Services Act.

"Several of our legal teams had outgrown our existing premises at The Ropewalk, so relocating these teams to Cumberland House made good sense. This is a significant investment for the firm and demonstrates our commitment to provide solid legal advice to businesses and individuals in Nottingham."