Prenups – but I’m not rich or famous, so why bother?
Prenuptial agreements or to use the legal term Binding Financial Agreements are becoming increasingly popular and approximately 10% of couples have them in place.
A ‘prenup’ allows you to enter into an agreement with you partner and set your own rules for division of property in the event of separation.
You don’t need to be contemplating marriage to sign a ‘prenup’. Usually they are signed at the beginning of a relationship, however, they can be signed before or during a relationship as well (sometimes known as the mid-nup).
A ‘prenup’ is the cheapest, most flexible and effective way of protecting assets from a partner. If there is no ‘prenup’ in place at separation, all of the financial resources available to the parties are included in the asset pool available distribution by way of property settlement. In other words, if you purchased an asset, say a house and you had significant equity in that asset prior to commencing the relationship, depending on the length of the relationship in some cases all of that equity may form part of the asset pool available for distribution. A ‘prenup’ can also protect past and future inheritances, gifts from family members and Trust distributions.
For ‘prenups’ to be valid they must be in writing and signed by both parties in front of a solicitor after both parties have both received separate independent legal advice. They cannot go to see the same solicitor.
A ‘prenup’ ought to involve some very careful thinking and should be flexible enough to allow each of the parties to evolve. What is fair at the start of a relationship may be unfair later in the relationship particularly if one party has stopped work to raise children or moved cities to support their partner’s career.
If you already have a ‘prenup’ and it has been in place for a number of years, you ought to review it regularly to ensure that it is keeping pace with any changes in your relationship.
An expert solicitor can provide you with advice and information to ensure that your assets and those of your partner are protected in the event of separation. A properly prepared ‘prenup’ will provide certainty and security to both parties.
If you would like to know more, please contact one of our friendly staff at Bambrick Legal today:
- Call us on 08 8362 5269
- Email firstname.lastname@example.org
- Fill in our enquiry form here
- Visit our office at 133-135 Rundle Street, Kent Town SA 5067
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