Prenuptial agreement in Perth is an important concept when discussing family law cases of divorce or separation. A prenuptial agreement is a prenup, binding financial agreement, or simply a BFA.
This article will provide a detailed explanation of what a prenuptial agreement in Perth means, by exploring important points which are relevant to this topic.
A prenuptial agreement in Perth is essentially a financial agreement which provides information about how the division of assets, or distribution of property is to take place between two parties, in the event of a divorce or separation.
The main purpose of a prenuptial agreement in Perth is so that each party can protect their assets following a breakdown of their relationship. There are numerous benefits of entering into a binding financial agreement. Most importantly, it offers financial certainty to both parties in case they separate.
In Australia, this is an important agreement because statistically, many marriages have ended in a divorce. This is why it is necessary for each party to formulate a binding financial agreement with the help of family lawyers. Family lawyers have experience of identifying assets, and handling the division of assets properly.
Notably, Section 90B of the Family Law Act (1975) details all legal information related to binding financial agreements.
Purposes of Prenuptial Agreement in Perth
Given below is an overview of why parties should always seek to get their binding financial agreements finalised. Notably, parties can enter into a BFA either before their relationship, during their relationship, or after their relationship has ended
1. Enables faster and more efficient properly settlement
Having a BFA is an excellent alternative to approaching the courts during properly settlement. In cases where parties dispute over the division of assets, the resulting court procedures will be lengthy and complicated.
A BFA, therefore, provides a good alternative to that. By outlining the wishes of both parties in relation to division of property, it prevents any conflicts from arising in the event of a divorce or separation.
2. Flexibility
Because this agreement involves both parties participating and stating their wishes regarding property settlement, it is the more flexible approach. The agreement provides both parties the opportunities to have proper discussions about division of assets.
Importantly, a family lawyer can facilitate both parties to have such discussions before formalising a BFA.
3. Protection
Following a divorce or separation, the financial situations of both parties become uncertain. This is because parties generally rely on each other for such matters.
This is especially the case in families with more traditional structures, such as, where the mothers are primary carers of the children, and fathers are the sole earners of the family.
In these cases, a divorce/separation may be particularly difficult for the non-earning member of the family. Importantly, when finalising the division of assets, non-financial contributions (such as looking after the child) are also very important.
In such cases, BFAs provide some form of financial protection to both parties by enabling them to secure assets.
Lawyers’ Role for Finalising Prenuptial Agreement in Perth
It is important for both parties to gain legal advice and guidance from lawyers who will represent their interests. Lawyers play a crucial role in finalising a prenuptial agreement in Perth. Given below is a brief list of certain tasks which lawyers have to undertake:
- Identifying all the assets and liabilities of the party in the asset pool, including income, property, superannuation, debts;
- Assessing the asset pool and evaluating contributions of both parties, this includes both financial (income, superannuation) and non-financial contributions (raising the child/ren);
- Considering current and future needs of each party, and assessing all other relevant factors such as each party’s capacity to work etc; and
- Ensuring that the asset division which results is equitable and does not impact any party negatively.
Reasons Why Courts Can Set Aside a Prenuptial Agreement
A prenuptial agreement in Perth can be set aside if it is found to be legally invalid. There are various reasons why a prenup can be set aside. These include:
- If the parties themselves enter into a new BFA explicitly stating that the older BFA be terminated.
Apart from this, the Family Court can set aside the prenuptial agreement in Perth for the following reasons (among others):
- If one party fails to make a full and frank disclosure of all assets;
- If the party entered into the agreement only to defraud a creditor; or
- If it is found that one party was forced to enter into the prenup by force etc.
Preparing a Prenuptial Agreement With JB Solicitors
Following a divorce or separation, there are many matters which need to be finalised. Of all matters, often, the two most disputed matters include child visitation/custody issues and property settlement.
Prenuptial agreement in Perth offers a great approach to prevent any potential disputes related to property settlement or division of assets. It enables the parties to have a sense of financial certainty, the lack of which causes great amounts of stress and anxiety during a divorce or separation.
While preparing a prenup, you will need trustworthy professionals who have a wealth of experience in dealing with all different kinds of arrangements and financial agreements.
At JB Solicitors, our expert team of family lawyers have the experience of formulating BFAs for couples both before and during their marriage/relationship, and after the relationship has ended.
Through this experience, they have developed the ability to navigate through the various complexities which arise when preparing financial agreements.
At our firm, we always put our clients’ needs first. We value transparency and ensure that our clients’ are aware of the legal costs involved. We prepare cost agreements, and also offer fixed-fee prices for many of our services so you are aware of all legal costs from the get-go. Read our article about costs of prenup in Australia.
For more information on the topic of binding financial agreements, or other matters related to family law, please do not hesitate to get in touch with our friendly team.
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