In Australia, approximately one-third of all marriages will end in divorce. While this is unfortunate, the reality is that it is crucial for you to financially protect yourself if a divorce were to eventuate. A prenuptial agreement can achieve this protection, or what is known in Australia as a Binding Financial Agreement.
The purpose of this article is to provide some clarity on what prenuptial agreements are, including commonly asked questions such as the benefits of a prenup and the actual prenup agreement cost.
What Is a Prenup?
A binding financial agreement or prenuptial agreement (“prenup”) is a legally binding agreement that outlines how a couple’s assets will be distributed upon the breakdown of their marriage or de facto relationship. A prenup can also include provisions for spousal maintenance.
Sections 90B–90KA of the Family Law Act 1975 (Cth) deal with these arrangements concerning marriage parties, while sections 90UA–90UN deal with these arrangements concerning de facto relationships.
Prenuptial agreements include information regarding:
- Assets and liabilities
- Personally owned and joint assets
- Any expectations of gifts and/or inheritances
- Insurance coverage
- How any property will be split
- What is covered in each party’s Will
- Spousal maintenance
The Benefits of Having A Prenup In Place
Costs: Prenups are an alternative way to resolve property settlement matters without involving the Court. They can be far more cost-effective than court proceedings which can also be lengthy and much more stressful.
Certainty: Prenups entered into before or during a marriage are a way to give each party certainty and a clear understanding of how their property will be divided if the relationship was to end.
Protection: In cases of a second, third or even fourth marriage, a prenup can ensure your assets will go to your children rather than your new spouse.
Flexibility: The flexibility for parties decide for themselves how they want their assets to be distributed and set out the basis for distributing the assets in the agreement.
Speed: Prenups can also be prepared and executed quicker than Applications for Consent Orders. There is often a delay between filing the proposed orders and the documents being approved and sealed by the Court.
Despite these benefits, it is essential to note that prenuptial agreements carry with them uncertainty and can cause tremendous strain on a relationship before the marriage has even begun.
To see whether a prenup is right for you, please get in touch with our team to discuss your particular circumstances.
Prenup Agreement Cost
It is a common misconception that a prenup is only for wealthy individuals or people who think divorce is possible. As highlighted previously, this is not true, and many benefits exist for anyone about to get married to have a prenup in place.
A prenup agreement cost can range based on multiple factors. These factors include how many assets and liabilities each individual has and any prolonged negotiations. Please do not hesitate to contact out firm to discuss your particular situation and get an idea of the costs involved.
When Should a Prenup Be Signed?
In the ideal situation, a prenup should be signed several months before the marriage. This is so complications are reduced, and each party is given an adequate amount of time to review the terms of the prenup agreement and negotiate to ensure a fair compromise is reached.
A further advantage of not leaving a prenup until the last minute is that it will minimise the risk of the other party claiming they agreed on the grounds of unconscionable conduct or undue influence due to any pressure placed on them to sign before the wedding.
Importance of Seeking Legal Advice
It is important when discussing prenup agreement costs and prenuptial agreements in general.
Here at JB Solicitors, we’ll make the process as pain-free as possible. We have fixed-fee pricing for family law, giving you a clear sense of the costs from the start, and we will be sure to help you out every step of the way. With years of experience under our belt, we pride ourselves on making each client’s family law experience as positive as possible.
Contact JB Solicitors today to speak with one of our friendly and experienced family lawyers.
More Articles
If you have any more questions regarding what a prenup agreement costs or any other family law matters, head over to our blog section for more informative articles on a wide range of family law topics.
Alternatively, here are our newest articles linked below:
Mothers Rights & Child Custody in Australia
