in Family Law

Prenup agreements – not just for celebrities!

Prenup Agreements are not just for celebrities although we know people with a lot of assets and income take precautions to protect their fortunes before tying the knot.

We’ve read the news about celebrity prenups and massive divorce payments after marriage breakdown. They amaze us because of the staggering figures involved!

Because your average bride and groom could only dream of such riches, they automatically assume that prenup agreements don’t apply to them and aren’t a necessary part of sharing a life with their chosen partner.

But even if you’re of moderate means there are still many reasons to consider getting a prenup agreement. Here are just a few:

To foster open and honest communication

Entering into a prenup agreement opens the door for a frank and honest discussion about your joint finances.  A prenuptial agreement provides clarity, confidence and peace of mind, building the foundations of trust and honesty in your relationship. [1]

To define responsibility for any debt

If one half of a partnership comes to the relationship with a significant amount of debt it can create trouble down the track if responsibilities aren’t clearly defined. Couples may want an agreement that sets out exactly who is obligated to pay what debts. If you are debt free, you probably want to ensure that those loans don’t become your burden. [2]

To protect a family business

If you’ve worked hard building a business before you commit to a serious relationship you may want to protect your ownership and interests. A prenup agreement can ensure that a spouse does not become involved in the decision-making or benefit from profits of your business without your consent. [3]

If you’re the recipient of inheritance or trust fund money

You may not be wealthy now, but if you’re expecting to come into an inheritance in the future you may want to ensure your inherited assets are insulated from your spouse or partner in the unfortunate event of separation and divorce. [4]

To protect your superannuation

We Australians spend our whole working life contributing a percentage of our income towards our superannuation fund. Because this money is usually only available to us after retirement, it is easy to forget that it is one of our most important assets. The average lump sum any Australian will need to save in order to have a comfortable retirement is $1 million.[5] A prenup agreement can define how super will be divided between partners in the event of separation or divorce.

The cost of a prenup is only a fraction of the cost of an engagement & wedding

The dress, the food, the venue, the ring – these are all expenses that couples are prepared to cover before they take the big step of tying the knot. A prenup agreement costs far less than any of these items, and is far more essential to a healthy financial relationship. There is a common misconception that agreements and lawyers are expensive, and therefore are only really viable for people with high incomes. This is not the case. A simple prenup can cost less than half that of an engagement ring.

TAKE AWAY: You don’t need to be a highflying millionaire celebrity in order to protect yourself with a prenup agreement!

 

Inveiss Legal is an innovative practice of Australian registered and professionally indemnified lawyers. We are on hand 24/7 to provide low fixed fee drafting and preparation of Binding Financial Agreements including providing the required independent legal advice for a fixed fee.

[1] http://www.inveiss.com/tis-season-5-benefits-prenup/

[2] http://www.mainstreet.com/article/why-you-need-a-prenup-to-marry-even-if-you-think-youre-poor

[3] https://www.imoney.my/articles/heres-how-a-prenuptial-agreement-protects-you-financially

[4] http://www.mainstreet.com/article/why-you-need-a-prenup-to-marry-even-if-you-think-youre-poor/page/2

[5] http://www.smh.com.au/money/planning/retirement-thats-the-milliondollar-question-20130525-2n3tw.html