When you get married or you commit to a life together, it’s hard to consider the prospect of it failing or coming to an end. However, failing to take the necessary precautions, such as signing a prenup, or prenuptial agreement, to protect yourself financially can be a costly mistake.

You may not see the benefit in a prenup when you are in love, but it really does makes perfect sense. What better time is there to decide on how assets and property are split than when both parties still have the upmost respect for each other. Not only can it lead to a more reasonable settlement, it can also remove any uncertainty that each party may have should the marriage come to an end, leaving you both free to move forward with your lives. It can also save you money on costly legal advice in the long-run.

Whilst you may not be walking down the aisle or having a legal ceremony, when a de facto relationship comes to an end there are certain rights and responsibilities that apply, much like in a marriage. So, it’s worth speaking with a family lawyer to work out how the relationship could impact your financial future.

What is a prenup or prenuptial agreement?

A prenup, or prenuptial agreement lays out the assets and liabilities each party has when they enter the relationship or marriage, and works out how assets and property will be divided should the relationship end. It’s important to note that children cannot be included in a prenuptial agreement.

A prenup can help give clarity around the division of the following, but not limited to;

  • Money
  • Property
  • Business
  • Trusts
  • Superannuation and pensions
  • Debts and liabilities

Whilst there is are strict guidelines to adhere to when entering a prenup to ensure its validity, once complete, it can give both parties peace of mind that their finances and affairs are in order should the relationship come to an end.

Steps you must take to ensure the validity of your prenup;
  • Each party to the relationship must seek independent legal advice from a qualified Australian lawyer
  • A prenup must be in writing
  • Each party must enter the agreement willingly
  • Each party must disclose all assets and liabilities they have when entering the agreement
  • When the prenup is signed, it must be in the presence of an Australian lawyer

Whilst a prenup does not seem like the most romantic gesture, it does seem to be the most sensible. A prenup does not write the beginning of the end, but rather it helps all parties work towards securing their financial future. By signing a prenup, it can save heartache, time and additional legal fees in the long-run.

By talking to the family lawyers at Bruce Legal you can be in control of your financial future no matter what happens.