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Postnuptial Agreements (Postnup)

 

In Australia, a person can enter into a ‘Financial Agreement’ before a marriage (commonly known as a ‘prenup’), during a marriage (a ‘postnup’), or after marriage.

Financial Agreements are sometimes referred to as ‘Binding Financial Agreements’.

A person may also enter into a Financial Agreement before a de facto relationship, during a de facto relationship, or after a de facto relationship ends.

The relevant legislation, requirements, and application vary depending on the type of Financial Agreement.

A Financial Agreement that is entered into may later be deemed not to be ‘binding’ if it does not meet certain requirements.

For example, before entering into any Financial Agreement, each party must obtain independent legal advice for the Agreement and, to be ‘binding’, the Agreement must comply with the relevant provisions of the Family Law Act 1975 (Cth).

 

Are postnups worth it?

 

A ‘postnup’, as it is colloquially known, is an agreement entered into during marriage by parties who are married and want to stay together but who wish to protect their respective property, an inheritance, or other assets in the event of divorce.

Given the high rate of divorce in Australia, it is perhaps unsurprising that married couples might consider entering into a postnuptial agreement.

The benefits of entering into a postnup may include:

  • Protecting family wealth secured by one party while still providing for the married couple to build wealth jointly during their relationship;
  • That there is no Court involvement;
  • Sentimental or significant assets can be quarantined from the property pool;
  • Certainty of outcome (should the marriage end); and
  • ‘Saving’ a marriage where one party has different spending habits (for example, gambling).

The law regarding Financial Agreements in Australia is extremely complex. If you are a party to a Financial Agreement or a proposed agreement, we recommend that you obtain legal advice concerning your rights and obligations.

In the event of death, a Financial Agreement will be terminated and cannot be relied upon by a surviving party. At the time of entering into a Financial Agreement, it is therefore recommended that you execute new estate planning documents, such as a Will.

 

Contact Us

 

For more information, contact us at Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.

You can also read more about our Family Law services here.

Related Blog – Joint Bank Accounts & Separation

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