Creating a Binding Financial Agreement before marriage (commonly known as a “prenuptial agreement” or “prenup”) has become increasingly popular.
A prenuptial agreement serves to safeguard each person’s assets accumulated prior to marriage or a registered relationship.
Should you be getting a prenuptial agreement?
There is a misconception that prenuptial agreements are used only by the rich and famous who have mass amounts of wealth and assets. However, prenuptial agreements are accessible and important for all ages and financial status. Since this common misrepresentation has been tackled, there is less stigma surrounding prenuptial agreements and younger generations are engaging lawyers more often to draft the document on their behalf.
Now that women are increasingly prominent in the workforce and are creating independent wealth and security it is important for them to consider the protection benefits available in creating a prenuptial agreement.
It has also become more common for parties in “later in life marriages”, second marriages and/or blended families to prepare prenuptial agreements to ensure that the assets which were attained prior to the relationship are safeguarded in the event of a break down of the relationship.
The idea of prenups being “clinical” and “unromantic” are clichés of the past. Prenuptial agreements are now being more commonly recognised for their true intention namely to safeguard the assets of the parties to the document.
How to avoid prenuptial pitfalls:
Make sure you avoid any ‘legal mishaps’ by ensuring these crucial steps are followed:
· Duress – Each party seeks its own independent legal advice.
· In Writing – The prenuptial agreement must be in writing and signed in the presence of a lawyer.
· Lack of disclosure – The document must disclose all of the assets, liabilities, income and expenditure of the parties and outline how they should be distributed in the event of a breakdown of the relationship.
· Pressure – Give yourself sufficient time to prepare and consider the document. Having the document prepared only a few weeks out from the impending marriage can create pressure to finalise the document and so can be a ground to set aside the document.
We advise that our dedicated family law team are more than happy to answer any further questions you might have in relation to prenuptial agreements and are more than happy to talk to you about whether a prenuptial agreement is the best option to safeguard your hard-earned financial assets.
Hopefully, this quick read has helped you learn a little bit more about prenups.
📲 Feel free to contact Hatzis Lawyers for further information or to begin your legal process.