Law Blog

Prenuptial Agreements are often associated with bitter divorce proceedings and pain in general, but have you ever considered that Prenuptial Agreements may actually be a statement of love between two people and commitment to a long-lasting and healthy relationship?

If you want your marriage to last the distance, dealing effectively with inevitable disagreements must surely be a high if not the top priority. Disagreements between spouses are often about financial matters, and as a rule, the more money involved, the greater the argument and negative feelings associated. An argument over what to spend a $50 pokies win on would no doubt be easier to resolve than deciding how to invest (or spend) $1,000,000 inherited from a distant deceased relative.

Prenuptial Agreements do away with the chances of arguments regarding money (and other issues also) going unresolved and causing significant strain to relationships as a result, and as such, they are a written and legally binding declaration that you care enough about your relationship to do everything in your power to reduce instances of serious disagreement before they happen! If that isn’t a statement of love, what is?

Of course, there are circumstances in which you may want to keep the concept of a Prenuptial Agreement quiet and maximise your chances of being entitled to a share if things should not go to plan. Contact us and we can help you identify the best solution for you.

Why Create a Prenuptial Agreement?

Prenuptial Agreements (or “Prenups” or “Binding Financial Agreements”) are wise not just for celebrities and the mega-rich, but for everybody who is entering into a marriage. If you are not getting married, but are either entering into or are currently in a de facto relationship, click here for information on Cohabitation Agreements, which are the legal equivalent of Prenuptial Agreements but for de facto partners... including same-sex partners.

Unfortunately, relationships can and do break down – a lover can become an enemy sometimes over night, and sharp emotional divisions can have implications for finances and assets. The existence of a binding Prenuptial Agreement will mean a degree of certainty in the face of confusion in other areas of life, and thus reduce stress (the last thing you need during a relationship breakup is more stress!).

Another unfortunate fact of life is that money can change the way people behave. If one partner suddenly receives an enormous bequest or wins the lottery, differences in opinion may arise in the relationship regarding finances, when no such differences existed prior to the financial windfall.

Prenuptial Agreements prevent disagreements regarding how money received by one spouse is to be used.

Won’t a Prenuptial Agreement Devalue our Relationship?

Many people feel that bringing a written legally binding agreement into a relationship (whether it is a marriage or a de facto relationship) is tantamount to making a declaration to the world that trust is somehow lacking in the relationship.

After all, if two people truly love each other and want to spend the rest of their lives together, why would they want to keep their assets separate or make provision for the relationship breaking down at all? The relationship will never break down no matter what, after all!

The truth is that circumstances people do not imagine in their wildest dreams can and do occur, and if these circumstances are serious enough and occur over a long enough period of time, arguments can be the inevitable result.

These challenging circumstances include:

·         Infidelity

·         Sudden financial gains such as bequests, lottery wins etc

·         Changing opinions and attitudes

·         Health issues

The Power of Prenuptial Agreements

Prenuptial Agreements can specify, with the force of law, the following:

·         Who owns the family home

·         Who owns a particular investment property

·         Who owns the car/s

·         Who is responsible for maintaining the family home/ investment property/ cars

·         How assets are to be divided in the event of the relationship breaking down

·         Who will be responsible for liabilities in the event of the relationship breaking down

·         Who will own assets acquired at a future point in time (including bequests from wills)

·         Will one spouse have to pay to maintain the other?

·         What is the situation regarding children?

The Process

Creating a Prenuptial Agreement (also known as Binding Financial Agreement or Prenup) in Brisbane or anywhere else in Queensland is no different to creating a Prenuptial Agreement in most areas of Australia.

Prenuptial Agreements, which are more properly known as Binding Financial Agreements are governed by the Family Law Act 1975 (Cth), which is a federal act, meaning that Prenuptial Agreements created in most states and territories of Australia are governed by the same law (except for some older agreements – ask us for details).

To get the process of drafting a Prenuptial Agreement under way,click here to be taken to our Contact Us page, where you can fill in some details about yourself and your situation to allow us to quickly get back to you with more information on how to proceed.

Please feel free to call if you would prefer to start this process right away!