Although no one anticipates a marriage to end unexpectedly, it is always a good idea to plan for the future in case married couples or those in a de facto relationship decide to call it quits. Therefore, couples should agree on how to divide their net assets, liabilities, and other resources in case a relationship or marriage ends. Such a legally enforceable agreement is referred to as a binding financial agreement, prenuptial agreement, or prenup. This article takes a deep dive into prenuptial agreements in Australia.
Is a Prenuptial Agreement Right for You?
Every marriage or relationship is unique and there is no standard procedure to determine whether the union needs a prenuptial agreement or not. However, couples choose to get a prenuptial agreement for a host of reasons. If you are planning to get a substantial inheritance or your income is likely to increase in the short-term, then you might want to consider signing a prenuptial agreement. Also, if you co-own a business with your would-be partner or spouse, it is a good idea to sign a prenup. Besides, if you have children from a previous marriage or relationship and you want to provide for them, then a prenup might suit you. Financial support for parents or loved ones can also be a reason for signing a prenuptial agreement. However, these factors are not the only reasons why people opt for prenups. Most importantly, it is a good idea to sign a prenup to save yourself from future heartaches and significant financial loss.
Conditions for Overturning a Prenuptial Agreement
The Family Law Act of Australia has provisions on how courts can overturn a prenuptial agreement. In general, if a party to the deal acts in an unconscionable manner, then courts might find a reason to nullify a prenup. Further, a prenup must be fair and free of coercion since acting under duress can render the agreement invalid. In this regard, both parties must seek the services of qualified solicitors before signing a prenuptial agreement. Notably, each partner must seek independent legal advice regarding the benefits and pitfalls of the agreement.
Apart from peace of mind, a prenup gives couples a host of benefits. For example, a prenup eliminates costly and time-consuming legal disputes related to financial matters. Besides, prenups ensure certainty since the agreement spells out how partners will share assets and liabilities in case of separation.
For more information, contact a family law service.Share