With spiralling house prices and deposits, more and more adult children are relying on the bank of mum and dad to help them get a foot on the housing ladder.
This has led to a growing number of parents wanting a prenuptial or cohabitation agreement for their children to secure any future inheritance in the event of their relationship breaking down, according to law firm Simpson Millar.
Simpson Millar said it had seen a 25% increase in the number parents wanting a prenuptial or cohabitation agreement for their children in the last six months.
James Skinner, a family lawyer with Simpson Miller, said parents wanted to ensure any inheritance was left exclusively in the hands of their adult children, not their respective spouses or partners.
“This is particularly the case where mum and dad have financially supported their children to get onto the property ladder.
“The motivation for parents to sponsor these agreements is often different to the reasons why couples themselves decide to put one in place. Parents want to protect assets which they have had a hand in establishing – especially against a future husband, wife, or partner who they might deem to be prone to squandering money or even cheating.”
Earlier this year, a report from housing charity Shelter revealed that thousands of parents were raiding their retirement funds in order to help their children get on the property ladder.
Shelter said that 40% of parents have helped out their kids with their housing costs, handing over £23,000 on average.
