why you need a prenup - even if you're not a celebrity
news outlets frequently report on the sordid details of the rich and famous - including the latest scandals surrounding prenuptial agreements. should you get one too?
You might brush off the idea of a prenup if you've never made a record or a magazine front page... but family lawyers in Australia advise that couples in de facto relationships and those who have been married before, should explore prenuptial or Binding Financial Agreements.
Recently, 2,000 Australians (some married and some in de facto relationships) were surveyed and asked whether they would consider signing prenups on entering a new relationships. Almost 30% responded that they would be interested, while 7% stated that they would definitely obtain a Binding Financial Agreement. Twenty-two percent said that they would consider getting a prenup.
The most important factors for people who were in favour of prenups for new relationships, were protecting their homes, and their savings. Other factors included future inheritances, shares, superannuations, cars, pets and luxury items, such as jewellery.
More than half of the couples surveyed said that they would not get prenuptial agreements, while 18% were undecided. Based on these figures, it is clear that not everyone understands how prenups work, and that it is not for everyone.
A prenuptial agreement can provide a semblance of financial security, but your spouse can challenge it and the court can set it aside. Circumstances may change, for instance, your spouse might stop working to raise children, or because of a sudden illness. He or she may unexpectedly inherit money. If the relationship ends, the terms of the prenup may no longer be viewed as reasonable.
Strict legal requirements apply to drawing up prenups, and it is advisable for couples to seek independent legal advice before signing a prenuptial agreement.
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.