Pre-nuptial agreements (referred to in the Family Law Act as ‘binding financial agreements’) are growing in popularity, particularly amongst people who have previously been through a family law separation. If you would prefer to work out the division of assets and liabilities in advance of a potential separation occurring in the future, entering into a binding financial agreement could be a good choice.
Statistics show that just under one in three marriages or de facto relationships end in separation and this figure rises dramatically to one out of two relationships ending in the case where one or both parties have re-partnered.
A binding financial agreement will provide for certainty in the event that the relationship ends in the future. An agreement of this nature can also be used to exclude inherited assets, family heirlooms and significant gifts from claim by the other party if the relationship breaks down.
The law allows married and de facto couples to enter into a written financial agreement that is binding on them. The agreement replaces the spouses’ property and spousal support rights under the Family Law Act. The agreement may also include child support, but it must comply with the Child Support (Assessment) Act.
You must speak to a lawyer before entering into a pre-nuptial agreement as the agreement needs to include a statement of independent legal advice signed by the solicitor representing you and your partner. Calley Rajah Family Lawyers will work with you to create a binding financial agreement that applies to your unique circumstances.