Prenups: I’m Not Rich or Famous, So Why Bother?
A prenup (Binding Financial Agreements) allows you to enter into an agreement with your partner and set your own rules for the division of property in the event of separation.
You don’t need to be contemplating marriage to sign a prenup.
Usually, they are signed at the beginning of a relationship, however, they can be signed before or during a relationship as well (sometimes known as the mid-nup).
A Prenup Is the Cheapest, Most Flexible & Effective Way of Protecting Assets From a Partner
In other words, if you purchased an asset, say a house and you had significant equity in that asset prior to commencing the relationship, depending on the length of the relationship, all of that equity may form part of the asset pool available for distribution.
A prenup can also protect past and future inheritances, gifts from family members, and trust distributions.
For prenups to be valid, they must be in writing and signed by both parties in front of a solicitor after both parties have both received separate independent legal advice.
They cannot go to see the same solicitor.
A prenup ought to involve some very careful thinking and should be flexible enough to allow each of the parties to evolve.
What is fair at the start of a relationship may be unfair later in the relationship particularly if one party has stopped work to raise children or moved cities to support their partner’s career.
If you already have a prenup and it has been in place for a number of years, it is recommended you review it regularly to ensure that it is keeping pace with any changes in your relationship.
For more information, read this blog – Pre-Nups: Out of Favour for Property Settlement?
For more information, contact Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.
You can also read more about our Estate Planning services here.