Are you getting married soon? If the answer is yes, then undoubtedly you will have so much to do in the lead up to the big day. You have to choose the perfect dress, a memorable venue, delicious cake and the rings. However, many couples will not have a lawyer on their wedding to-do-list. The harsh reality is that 1 in 3 marriages end in divorce in Australia. While it may be highly unromantic or alarming otherwise to be discussing and negotiating prenuptial agreements, but the sooner you do, the better it is. It will eventually save you when the due time comes to distribute the assets.
Long gone are the days when a prenuptial agreement was a term confined to celebrities and power couples. Nonetheless, young couples who are getting married, with a limited amount of assets and intending to start a life together, are usually exempt from a prenuptial agreement. In the event that both parties possess a significant amount of assets before entering into a marriage, a prenuptial is highly recommended in that scenario.
What is a Prenuptial Agreement?
A prenuptial agreement (‘prenup’) is a legally binding financial agreement entered between two people in a relationship who intend to wed or live in a de facto relationship. In Australia, prenuptial agreements are known as Binding Financial Agreements (BFAs). The document confirms:
- What each of the parties had before the relationship;
- Has brought into the relationship; and
- How finances will be divided and sorted between the two parties if a separation or divorce occurs in the future.
Due to the fact that prenuptial agreements are generally attached to a social stigma, many Australian couples do not consider it before they tie the knot as research indicates only 14% of Australian engaged couples have signed prenuptial agreements. Prenuptial agreements are the seatbelt to any relationship, especially when you consider the fact that every third marriage in Australia potentially ends in divorce according to the Australian Bureau of Statistics.
If you have any questions about an existing prenuptial agreement, or you'd like to consider entering into a prenuptial agreement, give us a call on 02 8917 8700 or fill out the enquiry box and we will get back to you ASAP!