Popularity of Pre-Nups

A Pre-Nup which is known as a Binding Financial Agreement under Australian Law, is a financial agreement between two parties in respect of maintenance of one of the parties, property of those parties and property settlement of those parties. The  maintenance of the children of those parties can be documented in a Binding Child Support Agreement. These are two separate documents.

An agreement can be entered into before marriage, during marriage, or after separation.  They can be entered into by couples contemplating marriage, married couples, de facto couples and same sex couples.

Laws came into effect in January 2010 to strengthen these agreements and it is likely that they are to become very popular.

Research from theknot.com.au suggests that 14% of engaged couples are entering into pre-nuptials.  If you think about it, more and more people that are either moving in together as a de facto couple or who are getting married are usually older and have their own wealth.  That wealth maybe a house, unit or substantial savings they wish to protect.

Granted some may feel that it is taking all of the romance out of the relationship, but if it does not work out, at least you have the comfort of knowing exactly what will happen to your property and who will receive what.  This then avoids the necessity of any court proceedings.

If you are interested in discussing your options in respect of a Binding Financial Agreement please contact me on 4260 3900.