Prenuptial Agreements can help couples plan their financial future
Couples contemplating marriage or entering into a de facto relationship can enter into a financial agreement which is often called a prenuptial agreement. The purpose of a prenuptial agreement is to record how all or part of the property of the couple will be dealt with in the event of the breakdown of the marriage or relationship and can also deal with the issue of maintenance.
One of the most important parts of the prenuptial agreement is setting out the property of the parties and how it will be divided if the relationship breaks down. It is also important to consider what will happen to property that is acquired by the couple during the relationship.
One of the benefits of going through the process of negotiating a financial agreement either before or after the commencement of the relationship is that the couple is forced to face their fears and to discuss finances with each other. This is an opportunity for each person to explore their own attitudes towards money and property and to learn about the other person’s perspective. It allows you to be a conversation about how protectable generous the other party might be and whether they are relaxed or stressed about financial decisions. It is a way of making decisions while the couple are in good communication.
The way that couples make decisions around in the financial agreement may set the tone of the couple’s future financial relationship. I would encourage the couple to use either the collaborative process or mediation to help them make wise decisions regarding the financial agreement.
For the financial agreement to be binding on the couple it is necessary for each party to have advice from their own lawyer and for the lawyer to certify he has advised their client regarding their rights and entitlements. This advice would include the benefit and detriment of entry into the agreement should the relationship at some time in the future breakdown.