Pre-nuptial Agreements or also referred to as a Binding Financial Agreement (BFA), can be made before marriage and it can be a useful way to protect your assets. In the event of separation, if such an agreement is in place, it can exclude stipulated assets in the agreement from being divided.
Pre-nuptial Agreements can be made by couples before they enter into a marriage. It is particularly useful for spouses who have significantly more assets than their partner such as businesses, farms, inheritances, lottery wins or other financial assets they want to make sure they keep if the marriage ends. Typically the agreement outlines how the financial assets should be distributed if the relationship breaks down. It is completely up to the individual to choose whether they decide on making such an agreement. In other words, it is a safety precaution and can make property settlements at the end of a marriage less complicated.
The following steps are essential in making a binding agreement:
• Each party must receive independent legal advice;
• The legal advice must be from a lawyer in the Australian jurisdiction;
• The agreement must be certified by a lawyer representing each party;
• The agreement must be in writing;
• It should be drafted and signed in the presence of a lawyer and
• It must contain a complete disclosure of assets, liabilities, expenditure and income.