If you are thinking of getting married in Australia, then you should know about the prenuptial agreement in Australia. it has many benefits. If unfortunately, the marriage does not work for you, then you will receive the decided financial benefits after the divorce. We use prenuptial or Binding Financial Agreements for uncertain conditions, such as conditions where you are not happy with your married life anymore.
It is good to have this agreement as it can secure your assets. According to research, only 6 percent of married couples have an agreement. Three percent of them are not sure about the legal document, and 91% of them do not have any Binding Financial Agreement.
Let’s explore the details of a prenuptial agreement in Australia.
What is a prenuptial agreement?
This agreement is for couples who are getting married or starting a de facto relationship. This agreement normally covers financial issues but can also cover other matters like spousal maintenance. In Australia, it is known as Binding Financial Agreements or just prenups. This agreement decides in advance what to do with the net assets if the marriage or relation breaks down. If you have this agreement, then you will not have to visit Family Court.
If you don’t have a prenup, then the Family Court will sort assets according to the Family Law Act principles.
Luke Cudmore is a principal lawyer at Cudmore Legal. According to him, prenup gives more control over splitting the assets for couples.
How does prenup work in Australia?
The agreement is in writing, and both parties must sign it. The parties involved in the agreement should get legal advice independently, they both should have a separate lawyer. It is the responsibility of lawyers to inform them about all the pros and cons of the agreement. The lawyers will also sign the agreement to prove that they provided the advice.
What does prenup cover?
The prenup can include financial support for either spouse. It includes the decision about property and assets after separation. You will be glad to know that you don’t have to be rich to have a prenuptial agreement. It is your choice to have a fair and just arrangement between you and your partner.
As a prenup is arranged before the marriage you can add conditional arrangements to it. For instance, you gave birth to a child or what will happen if the family business increases or decreases?
Pros and cons of a prenuptial agreement:
If you are not sure whether to sign not to sign the agreement, the pros, and cons can help you a lot.
Here are some pros of the agreement:
A person gets peace of mind when he knows that he has plans for the future. A prenup will get you that peace of mind. You will move forward with ease. You will know what will happen if unfortunately you get divorced.
Better control in dividing assets:
It is good to have this agreement as your property will not become a subject of Family Court. The assets will be divided according to your agreement. It is possible for the Family Court to make an unjust decision regarding assets. It usually happens in long relations as the court does not have to earn disparity between the parties.
You may get financial empowerment:
A prenup is a simple way to settle financial agreements in a happy mode. Both have empowerment as both of them are negotiating the terms. They are doing this when there is harmony in their relationship and both of them have equal power, mostly it does not happen at the time of separation.
The transactions made in Binding Financial Agreements have the same benefits as Court Orders. If you are going to exchange property as decided in prenup you may get some savings on Capital Gains Tax and state transfer duty.
Cost and Time:
Once both parties agree on terms, we can prepare a Binding Financial Agreement and the accompanying letter of advice within a fortnight. But there is no prenup, and the parties cannot agree on how to divide their assets, they may have to go to court. The costs involved in court are higher, and the case can take months or even years to solve.
Let’s discuss some cons of a prenup
Yes, it is cheaper than the court’s procedure. But for getting individual legal advice, the cost may just rise. As both parties will need to have a separate lawyer.
Not good to account for the unpredictability of relationships:
It is an enormous challenge to agree on future possibilities, as it is possible that those events will never occur. In a prenup, we can add the number of children they have, but we are never sure about that. For instance, if they write it they will have two children, and after that time they get four children. The amount on the agreement will never be enough for them.
You may not have enough trust:
If you are going for the prenup, you may not have enough trust in your partner. It can get difficult to make a partner to enter a Binding Financial Agreement. But remember that the protection of assets is your right.
How much does a prenuptial agreement cost in Australia?
Usually, a prenup can cost $5000 to $10,000 for each party. Each party will represent separately. Remember, if the submitted document does not follow the requirements of the Family Law Act, or the document does not have all the information like you have not explained properly how you will divide your property, then believe us you have just wasted your time and money. The document has great importance, even if there is a single mistake the court may cancel it.
ALWAYS KNOW YOUR RIGHTS AND KNOW WHERE YOU STANDBy consulting one of our accredited family law mackay specialists.
How Family Lawyers Mackay Lawyers can help?
We have the best and most experienced lawyers for a prenuptial agreement. Our lawyers have complete knowledge regarding the Australian prenuptial agreement. We can help you understand the basics of a prenuptial agreement in Australia. We know that most Australians don’t have a prenuptial agreement, so you cannot get information related to this agreement from your surroundings. It is wise to get legal help, and we can help you with that. We can guide you if you need help with a prenuptial agreement in NSW, also you can contact us if you want to understand the prenuptial agreement in QLD.
Frequently asked questions:
Should we enter a prenup?
No one can tell you that. It all depends on your relationship. People go for the prenup if their partner is the owner of a business, or he or she can get a large inheritance, or they want to secure the future of their children. an owner
When should we sign the prenuptial agreement?
Well, this agreement is signed before the marriage. We recommend signing the agreement when over two months are remaining before the marriage.