Prenuptial agreements, prenups or financial agreements aren’t as exciting as wedding cakes or honeymoons, but they can help you avoid financial issues later in life. While a divorce stigma has been attached to a prenup, it can actually be a great opportunity to get on the same page for couples to plan their future together. With prenups on the rise in Australia, family lawyers in Caboolture can help draw up the contract to make sure all bases are covered.

 

What Is a Prenuptial Agreement?

 

A prenuptial agreement is a legally binding contract reached between two parties that sets out how property and assets will be divided if the relationship breaks down. These legal contracts must be in writing and stipulate how in the event of separation all or any of the property of the parties are to be allocated. The agreement will also cover financial resources and spousal maintenance. Prenuptial agreements can be made before or during the relationship – whether it’s a marriage or a de facto relationship.

 

For the prenuptial agreement to be binding, both parties have to sign the contract. Independent legal advice must be given, ensuring that each party obtained legal advice before committing to the arrangement. One other important piece to note is that prenups cannot include child custody or child support matters. Legally speaking, in that case, a court will have the final say about what’s best for the child.

 

Some of the common assets and property that prenuptial agreements protect include:

• Cash;
• Real estate;
• Investments;
• Inheritance;
• Pension entitlement.

Why Get a Prenup?

 

If you come into the marriage with a higher financial worth than your spouse, you may want to protect your assets. On the other hand, if one person has a lot more debt than the other or acquires debt during the marriage, you probably don’t want to take that on in the event of divorce. Other reasons why couples may seek a prenuptial agreement include:

• Avoiding letting the courts decide the division of property and assets;
• Keeping pre-marital assets separate;
• Avoiding the emotional turmoil of a divorce;
• One party is from a wealthy family and wants to protect potential inheritance;
• A safeguard and financial protection for both parties;
• The other party has debt;
• One party owns a business.

A well-written prenuptial agreement can help a couple avoid lengthy and expensive legal proceedings if faced with a breakup or divorce, reducing the need for legal action.

 

Hiring Family Lawyers in Caboolture

 

Once only considered reserved for the super wealthy and celebrities, today more and more couples are entering into marriage having accumulated more assets, resulting in a rise in prenuptial agreements. Family lawyers in Caboolture understand the intricate nature of prenuptial agreements and will help you understand your rights and responsibilities to protect yourself and your partner if the relationship breaks down.

 

Signing a Pre-Nuptial Under Duress

Some couples heading into a marriage believe that a pre-nuptial agreement is the best choice to protect their future interests as a "just in case” scenario. Recently in the news there have been some specific cases in which the original pre-nuptial agreement was not held up in family court. When a financial agreement was made before vows were exchanged you should be aware there are some circumstances where the contract can be deemed null and void.

One case in Australia sided with one former partner who believed she was harassed before signing a pre-nuptial agreement. A wealthy business man insisted his bride-to-be sign on the dotted line a few days before the wedding. He asked her to sign, stating the wedding would be called off if she did not. Eventually the relationship did break down and when it made it to the court, a judge ruled that the wealthy business man’s ex-partner was under duress when she signed the agreement and ruled it was not applicable in their divorce settlement.

This case set a precedent in Australia for pre-nuptial agreements. When going through a divorce, an experienced family lawyer will look at every situation and work to ensure your financial interests are well represented.