Popular culture is rife with references to the infamous prenup agreement. But is a prenup a good idea, and are they available in Australia?
Prenups in Australia
The equivalent of a prenuptial agreement in Australia is a Binding Financial Agreement (BFA). You can enter a BFA before, during or after a marriage or de facto relationship. It generally governs how the assets and liabilities of a relationship will be distributed upon separation.
A BFA is essentially allows you to contract out of the family law process.
Should enter a BFA?
A BFA may sound like a good idea on the face of it. However, the formalities associated with entering into such an agreement are quite detailed. In order to be binding both parties must have been advised independently of the advantages and disadvantages of the proposed BFA.
One of the advantages of a BFA is that it avoids the need for long and costly court proceedings. BFAs also remain private. A BFA also takes money out of your relationship, so you can focus on developing your connection without the need to worry about what happens if you separate.
What are my other options?
BFAs aren’t for everyone. Much will depend on the length of your relationship and what you would be likely to be awarded in the Family Court.
If you are considering a BFA or would like to know more about your options, please contact Kavanagh Lawyers on 08 6557 5888 to arrange an initial appointment.