Prenup/ Postnuptial Agreements

Binding Financial Agreements (Prenup Agreements & Postnuptial Agreements)

Binding Financial Agreements (BFAs), commonly referred to as prenup agreements and postnuptial agreements, can serve as a financial safety net for couples, helping them to manage risk, protect their financial future, and reduce uncertainty and stress. BFAs allow you to decide in advance how assets will be divided between each person, in the event a relationship ends. When prepared properly, a BFA can safeguard important assets, minimise the risk of costly disputes, and provide peace of mind for everyone involved. Proper preparation of a BFA can lead to the protection of significant assets, the avoidance of costly disputes, and it also provides peace of mind for all parties involved.

Early legal advice from an experienced prenup lawyer or postnuptial lawyer is essential to ensure an agreement is enforceable, valid, and tailored to your specific circumstances. Whether you are entering a new relationship, getting married, or already in a de facto relationship or married, tailored legal guidance can help you put the right protections in place for your financial future.

When a BFA is Suitable

A binding financial agreement can be entered into at various stages of a relationship. For example, if you or both parties are coming into a relationship with significant assets, you may choose to protect those assets ahead of time by putting an agreement in place before marriage, living together, buying property together, or having children. Another example is entering into a BFA during a relationship or marriage as circumstances evolve, or even after separation, to finalise financial arrangements so you do not need to go to Court.

BFAs are particularly useful as risk management tools, especially if your financial circumstances involve a family business, an expected inheritance, a significant difference in income, or other important financial considerations.

If you would like to find out if a BFA is beneficial for you, Schetzer Papaleo Family Lawyers and its team of industry-leading experts offer practical advice tailored to your individual financial situation.

What a Secure BFA Requires

For a BFA to be legally binding, it must meet strict legal requirements. One of the most important is full and honest financial disclosure. Each party must clearly set out their assets, debts, superannuation, income, and financial resources. Common hurdles and pitfalls encountered later on in the process arise because the disclosure was incomplete or intentionally inaccurate; therefore, transparency from the outset is essential.

Additionally, each party must receive independent legal advice before signing. This advice must clearly inform each party of the agreement’s impact on their rights, as well as the advantages and disadvantages at the time of entering into it.

When drafting the agreement, careful precision is essential to ensure that it clearly sets out how each asset, liability, superannuation, and financial resource is to be dealt with and practically implemented. Experienced postnuptial lawyers will prepare a BFA that factors in your financial circumstances throughout the relationship and post-separation. Experienced prenup lawyers will prepare a BFA that includes future-proofing provisions, such as what will happen or needs to happen if circumstances change, such as having children, or selling and acquiring assets individually or jointly.

Common Pitfalls to Avoid

If prepared incorrectly, binding financial agreements may be set aside. Choosing to sign an agreement too close to the wedding date or on the verge of separation may raise concerns about undue influence or stress. Similarly, poor or incomplete disclosure can undermine an agreement’s validity in the same way that vague or ambiguous terms can create uncertainty about how the terms of the agreement are implemented.

Addressing these risks early by receiving proper legal advice from the outset and throughout the process can help you avoid common pitfalls. With the right guidance from an expert family lawyer, you can ensure tour agreement is fair, carefully prepared, and legally sound.

How Schetzer Papaleo Family Lawyers Handles BFAs

We take a structured and transparent approach to binding financial agreements, ensuring both legal compliance and practical clarity. Our process begins with a detailed review and analysis of each party’s financial circumstances, followed by the negotiation of agreed principles. We then carefully draft the agreement with precision and work collaboratively with the other party’s legal team to finalise terms.

Our passionate team of industry-leading experts provides clear, practical guidance throughout the entire process. We are committed to protecting your best interests and giving you appropriate options specific to your personal situation.

Updating a BFA

If significant life changes occur that impact your financial situation – such as having children, relocating, restricting a business, etc. – it is important to review any BFAs you have in place. Updating your agreement at the right time can help protect your financial position and reduce the risk of potential future disputes.

Start your Prenup/Postnup Briefing

Ensuring that your binding financial agreement, whether a prenup or postnuptial agreement, is properly prepared can provide all parties involved with peace of mind and long-term protection. Seeking early legal advice allows you to approach the process with confidence and helps you avoid costly mistakes.

Start your prenup or postnup briefing today by getting in touch with Schetzer Papaleo Family Lawyers at +61 3 8602 2000 or by emailing us at admin@spfamilylawyers.com.au. Our team is available to discuss whether a binding financial agreement is right for your financial circumstances and guide you through the process of putting an agreement in place effectively.