Divorced or separated couples often ask us ‘how much does a prenup cost in Australia’? In this article we aim to answer the question of how much does a prenup cost in Australia.
Before that, firstly, what exactly is a prenup? The term prenup is the abbreviation of prenuptial agreement. In Australia, a prenuptial agreement is commonly known as a binding financial agreement or BFA.
A binding financial agreement, or prenup, is a legally binding agreement that outlines how the couple’s assets will be distributed in the event of the breakdown of their relationship.
A prenup will include details of all assets that the couple has, and it will specify how these assets will be divided between the couple following separation or divorce.
Moreover, a binding financial agreement can also include details about spousal maintenance payments. In the article below, we discuss other important aspects related to prenup, and explore the question of ‘how much does a prenup cost in Australia.’
Binding Financial Agreements
In Australia, two parties can enter into a BFA either:
- before their relationship (either de facto relationship or marriage)
- during their relationship
- during course of separation and before filing for divorce; or
- after their relationship has ended.
As mentioned above, a BFA or prenup will contain information about assets. Given below is the list that highlights the information that a BFA can include:
- Information about assets and liabilities
- Personally owned and joint assets
- Insurance coverage
- Spousal maintenance
- How property will be split between the couple
- What is covered in the Will of each party
- Expectations of gifts or inheritance
Binding financial agreements can also include information about spousal maintenance. Notably, a prenup can also be terminated if both parties wish to do so.
A binding financial agreement can be terminated if:
- The parties decide to enter into a new financial agreement. In this case, there must be a provision in the new agreement that states that the former (original) agreement has been terminated.
- The parties enter into a ‘termination agreement.’ Married couples will enter into a termination agreement in accordance with Section 90J of the Family Law Act (1975). De facto couples will enter into termination agreement in accordance with Section 90UL of the Act.
How Much Does A Prenup Cost In Australia?
We have briefly explored what a BFA contains. But, how much does a prenup cost in Australia?
Notably, the cost of a prenup agreement in Australia can vary depending upon the individual circumstances of the case.
For instance, if two parties have simple assets, professionals will be able to draft up a BFA in less amount of time. Therefore, the costs for this will be less as compared to BFAs that require more deliberation. Couples that have complex assets can expect to pay more for their prenuptial agreement.
The accurate answer to the question of how much does a prenup cost in Australia is that it will differ based on many factors. These factors include the number and types of assets and liabilities each party has. Moreover, the costs will be higher in case of lengthy or prolonged negotiations.
This is because lengthy negotiations means that your solicitor had to spend more time and efforts to draft a legally binding agreement. Depending on these factors the prenup can cost anywhere between $2500 to $5000 in Australia.
Most importantly, it is essential to contact a law firm to get an exact quote to prepare a BFA. Do not hesitate to call our office on 1300 287 911 to speak with a lawyer regarding costs to make a binding financial agreement.
How Much Does A Prenup Cost In Australia: Is It Worth It?
Now that you have an idea of how much does a prenup cost in Australia, you must be wondering if it is worth preparing a BFA. There are multiple benefits of having a BFA. It is important for every couple to consider drafting a prenup.
Prenups help prevent unnecessary disputes and stress in the event of a divorce or separation. Moreover, couples need not attend Court proceedings if they prepare BFAs.
A BFA can ensure:
- Flexibility: Each party can think about how they want the assets to be distributed. Furthermore, they can ensure that the agreement is made such that both of them are satisfied with the outcome. As opposed to this, if the matter escalates to Court, the division of assets may not be favourable to both parties.
- Speed: Parties can prepare BFAs more quickly as compared to consent orders, or court applications.
- Assurance: During court proceedings, the outcome is unpredictable. Whereas when entering into a prenup, both parties can make sure that their individual conditions are met. This gives each party certainty about division of assets.
- Protection: The breakdown of a relationship itself is extremely stressful. Following this, if a person does not feel financially secure, they might feel anxious. BFAs offer financial security and protection to each party after they have divorced or separated.
- Costs: Court proceedings for property settlement and other matters can be very expensive. Moreover, they are also time-consuming. Getting a prenup is more cost-effective and saves a lot of time for all involved parties.
How Can JB Solicitors Help You?
Firstly, our lawyers can give you an exact estimate of ‘how much does a prenup cost in Australia.’ They can do so my taking a look at all assets and liabilities that the couple has, and then they will gauge the amount of time required to draft a BFA.
We have the experience of preparing BFAs for various parties. Therefore, we have the technical knowledge to gauge assets and liabilities of a relationship and come up with financial agreements that both parties find equally satisfying.
Our team of divorce and family lawyers also consists of award-winning mediators with the experience of conducting sessions to facilitate healthy discussions between divorced or separated couples.
Contact us for more information.