Planning Ahead with a Financial Agreement
In these circumstances, you could consider entering into a Financial Agreement (often referred to as a prenuptial agreement).
Even though you’re not expecting the relationship to end, you or other members of your family may find a prenuptial agreement brings peace of mind. There is an argument that it is like the termination clause in a business contract – you want both parties to agree on what is fair while there is still strong trust and before emotions run high.
Financial Agreements including Prenuptial Agreements
If you’re part of a couple just starting your life together, you may not have thought about how you will split assets if you separate in the future. Alternatively, you might have gone through the process of separation once before and want to ensure that there is transparency and a clear pathway for how your assets will be divided if you and your partner part ways in the future.
How prenuptial and other Financial Agreements work
A Financial Agreement before either a marriage or entering into a de facto relationship is one kind of financial agreement entered into between partners.
This kind of agreement is often referred to as a prenuptial agreement. There are similar agreements for couples who are already married; couples who are living together in a de facto relationship; couples who have separated but not yet divorced, and couples who have divorced. While the legalities are slightly different, all function in much the same way.
The agreement can cover as little or as much as you and your partner wish.
It can cover everything one or other or both partners own, and any liabilities. Or it can cover only specific assets or other interests.
Often partners enter into a ‘prenup’ to protect a particular gift or inheritance which one of them receives. (They might receive it either before or during the relationship.) Sometimes the financial agreement protects an interest in a family trust or similar.
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Advice on existing Financial Agreements
In addition to drafting new Financial Agreements, we also advise on existing Financial Agreements.
This may include:
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Interpreting the terms of an Agreement to determine whether it is susceptible to any challenge in Court. That is, could the Agreement be aside?
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Reviewing your Agreement and advising you about whether it requires an update, particularly if there has been a change of circumstances over the course of a relationship.
