Fixed-price pre nups
What is a pre nup and what are the benefits?
A 'pre nup' or Binding Financial Agreement is an agreement between you and your partner that outlines how assets will be divided should you split. If your relationship breaks down, the amount of assets your partner may end up becoming entitled to as part of the litigation process, the costs and length of Family Court proceedings, and the hassle and emotional stress involved is far more unbearable than investing in a Binding Financial Agreement at the start or during your marriage or relationship.
Do I need a pre nup?
If you are married, intending to marry, in a de facto relationship, have assets or have been gifted an inheritance then it could be time to think about a pre nup.
How do I bring this up with my partner?
It is not surprising or uncommon that one party in a relationship will be more financially wealthier than the other. If that is the case, you and your partner may have different views about contributions to the relationships and entitlements in the event of a separation. Many say that this is best determined earlier during the relationship than at separation when more often than not, the relationship has unfortunately turned sour and we often find that parties are not on the same page in regards to their entitlements.
Are they binding?
In order for your Binding Financial Agreement to be binding;
- the Agreement must be in writing and refer to the relevant section of the Family Law Act 1975 as to what type the Agreement is;
- each party must have had received independent legal advice;
- the Agreement must be signed by both parties as well as their lawyers;
- the parties’ lawyers must each sign a Certificate that will form part of the Agreement.
Want more information about pre nups?
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