Are you wondering about a prenup agreement cost? The unfortunate reality In Australia is that approximately one-third of all marriages will end in divorce. Accordingly, the reality is that you must protect yourself financially if a divorce was to eventuate. A prenuptial agreement, or what is known in Australia as a binding financial agreement can achieve this protection.
This article’s purpose is to provide some clarity on what prenuptial agreements are, including commonly asked questions such as the benefits of a prenup and the prenup agreement cost.
What Is a Prenup?
A binding financial agreement or prenuptial agreement (“prenup”) is a legally binding agreement that shows how a couple’s assets will be distributed upon the dissolution 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 married parties
- Sections 90UA–90UN deal with de facto relationships.
Prenuptial agreements contain information about the following:
- Assets and liabilities
- What is covered in each party’s Will
- Personally owned and joint assets
- How any property will be split
- Insurance coverage
- Spousal maintenance
- Any expectations of gifts or inheritances
Does a Prenup Have To Be Signed Prior To Marriage?
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.
However, it should be noted that in Australia a binding financial agreement can be signed at any time prior to, during, and after a marriage.
What Are The Benefits Of a Prenup?
1. 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.
2. 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.
3. 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.
4. 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.
5. 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 their 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.
What About The Prenup Agreement Cost?
A common misconception is 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 our firm to discuss your particular situation and get an idea of the costs involved.
Importance of Seeking Legal Advice
When discussing matters such as ‘What does a prenup agreement cost?’, it is essential to note that the cost of a prenup or binding financial agreement will depend on the time, cost and complexity involved in your matter. To obtain a more accurate idea of the costs involved, please feel free to reach out to one of our friendly and experienced family lawyers to discuss your matter.
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.
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