Are you wondering about prenuptial agreement cost in Australia? This article will discuss what a prenuptial agreement is, including prenuptial agreement cost, and what the benefits of having a prenuptial agreement are.
In Australia, the divorce statistics reflect a sad reality. Nearly one-third of all marriages end in divorce in Australia. In the unfortunate event that you and your partner get divorced, having a prenuptial agreement in place will ensure that both the parties remain financially protected following the break down of the marriage. In Australia, a prenuptial agreement is commonly referred to as a binding financial agreement (BFA).
What Is A Prenuptial Agreement?
As briefly mentioned above, a prenuptial agreement, also called a prenup or BFA is an agreement that a couple enter into to clearly specify how their property and assets are to be divided in case their marriage ends in a divorce.
Importantly, these agreements can be entered into either before, during or after the breakdown of the marriage or relationship. A prenuptial agreement can be entered into by same-sex couples, married couples, and de facto couples. Often, a prenup also includes provisions for spousal maintenance, or spousal support.
Under the Family Law Act (1975), sections 90B to 90KA deal with binding financial agreements involving married couples; and sections 90UA to 90UN of the Act deal with binding financial agreements involving de facto couples.
What Does A Prenup Include?
Before exploring prenuptial agreement cost, let’s also understand what all are included under a prenup or BFA. Most commonly, information about the following are included in the agreement:
- Personally owned assets, and joint assets
- Assets and liabilities
- Information about property and estate that is covered in each party’s Will
- Insurance coverage
- Information on how property is to be split between the two parties
- Information on spousal maintenance or spousal support provisions
- Any expectations of gifts or inheritances
Why Should I Get A Prenup?
There are many benefits of entering into a prenup or BFA with your spouse, or former spouse.
- Alternative To Court
When two parties enter into a prenup, it is a way of ensuring that there are no conflicts when you have to resolve property settlement matters. When this does not happen, people often have to approach the court which is both time-consuming and costly.
Court proceedings for property settlement matters are often lengthy and complicated. To avoid this, it is better to enter into a mutual agreement, and ensure a cost-effective way to solving property settlement issues by entering into a prenup.
- Certainty
When you realise that your marriage is about to end, having a prenup gives both parties certainty around how property is to be settled so that they are both financially stable following the separation or divorce.
If a prenup is not in place, there will always be confusion around these matters, and the uncertainty will add to your stress.
- Protection
A prenup ensures that all assets and property will go to your children – in cases where a person remarries. If a prenup does not exist, there are high chances that the property will go to the new spouse. If you want the asset to be protected and to ensure that it goes only to your children, entering into a prenup is essential.
- Speed
Prenups can be prepared and be executed very quickly, as compared to applications for consent orders at the court. This is because, it takes time for the court to file the proposed orders, and approve the orders.
- Flexibility
An important aspect about a prenup or BFA is that it provides both parties the opportunity to discuss how property should be settled amongst themselves. They have the flexibility to decide how the property should be distributed, and how assets must be divided.
It is up to the the parties to decide the basis for distributing property and assets in the agreement.
Prenuptial Agreement Cost In Australia
Generally, in Australia the prenuptial agreement cost varies depending on the time it has taken legal practitioners or solicitors to prepare the prenup, provide advise and guidance to their clients in relation to the agreement, and finally to execute the financial agreement.
Other factors that determine prenuptial agreement cost in Australia include how many assets and liabilities each individual has, and whether there were any prolonged or complicated negotiations.
Since each case is different with different circumstances, the prenuptial agreement cost will vary for each client depending on their situation. The best way to find out the exact prenuptial agreement cost for your case is to contact a solicitor and ask them to assess your case to give you a cost.
In discussing and drafting these agreements, please ensure that you seek the guidance of experienced lawyers who have worked with BFAs before. If parties fail to do so, there are extra legal costs that you may incur.
For instance, in the case of Graham & Squibb [2019] FamCAFC 33, there were major errors in the drafting of the prenup, which ultimately caused the prenup’s validity to be questioned.
How Can JB Solicitors Help?
Now that you know that prenuptial agreement cost can be determined only after each situation is assessed individually, it is important to get in touch with experienced lawyers who are well-versed with drafting such agreements.
At JB Solicitors, our lawyers have a wealth of experience in dealing with BFAs , and are committed to understanding clients’ wishes while drafting BFAs.
Under Australian law, prenups or BFAs do not expire. However, if you wish to terminate a BFA, it can be terminated by the court by a mutual agreement between both involved parties. For these matters, it is advisable to seek the expert guidance of our lawyers.
As mentioned above, couples can enter into a BFA either before the marriage, or during the marriage, or after divorce. Similarly de facto couples can enter an agreement before a de facto relationship, during, or after separation.
Contact our friendly team of lawyers today for any further questions, or to book a consultation.
