Prenuptial agreements: Unromantic, but important
The prenup seems so utterly unromantic — or just plain wrong — but it's also become so right for so many these days: those keenly aware that a marriage may end up in a legal separation, divorce or death. Most prenups tackle financial issues such as real estate, division of bank accounts and potential spousal support in the case of divorce or separation.
Who does it apply to?
A BFA can be made between couples who intend to marry, are married, or have been married. Same sex couples and defactos have always been able to have a contract between them.
It needs to be signed by both parties, and a certificate of legal advice must be provided that the party concerned has obtained independent legal advice. The Binding Financial Agreement is not legally enforceable until a lawyer explains the BFA.
What does a BFA deal with?
A BFA can deal with any or all property and financial arrangements.
It can include
• spousal maintenance,
• superannuation,
• and incidental or ancillary matters.
Why are they important?
BFAs result in greater certainty in property settlements. They allow couples who do have a relationship breakdown to take control of their financial affairs.
The agreement allows practical financial matters to be dealt with in a tax effective way. For example joint ownership of shares, real estate, or valuable personal commodities.
This results in greater certainty and avoids conflict over financial matters in the event of a relationship breakdown.
A BFA may be particularly relevant in the scenario where one party is bringing considerable family wealth into a relationship, for the protection of prior assets, or for farming properties and family businesses.
Second marriages should particularly consider a BFA.
Tax Planning
One can provide a tax effective mechanism for the division of property if there is a break down.
Who Needs Them?
• Anyone about to enter a marriage who is concerned about the inadequacies of the laws in the face of today's social realities;
• Anyone who is remarrying;
• Anyone concerned about protecting the assets of children from a prior marriage;
• Anyone who has a financially dependent parent;
• Business owners, particularly of professional practices and particularly those with business partners, because a spouse effectively becomes a silent partner in the business;
• Anyone with significant separate property in states where a spouse is entitled to a share of income from separate property.
• Anyone whose intended spouse has significant premarital responsibilities, such as alimony, child support, or tax obligations.
• Anyone cautious enough to prefer a written record of the ownership of assets to avoid confusion in the future from creditors or other family members.
Guidelines for creating the agreement
A prenuptial agreement is valid only if it is created under two conditions:
1) There must be "full disclosure" between the two parties, in order that there will not be a finding of fraud, misrepresentation, or duress. Both must thoroughly disclose financial details: income, assets, and liabilities, in the document.
2) Each spouse must individually be represented by separate attorneys prior to signing the prenuptial agreement, again to reduce the risk of drafting and agreeing to an unfair agreement
Once each of the two conditions above are met, and the contents of the prenuptial agreement are satisfactory to both parties, you and your spouse each need to sign the prenuptial agreement, and the prenuptial agreement must be notarized.
Governing Law
Prenuptial agreements are recognised in Australia by the Family Law Act 1975
Contents
• Importance of finance agreement
• Who need them
• Governing law
• Assets distribution
• Full disclosure of assets
• Guideline for the agreement
• Tax planing
Reason to buy from Net Lawman
The pre-nuptial agreement from Net Lawman provides you a comprehensive range of agreements that save your time and can be amended accordingly as and when required.
The prenup seems so utterly unromantic — or just plain wrong — but it's also become so right for so many these days: those keenly aware that a marriage may end up in a legal separation, divorce or death. Most prenups tackle financial issues such as real estate, division of bank accounts and potential spousal support in the case of divorce or separation.
A BFA can be made between couples who intend to marry, are married, or have been married. Same sex couples and defactos have always been able to have a contract between them.
It needs to be signed by both parties, and a certificate of legal advice must be provided that the party concerned has obtained independent legal advice. The Binding Financial Agreement is not legally enforceable until a lawyer explains the BFA.
What does a BFA deal with?
A BFA can deal with any or all property and financial arrangements.
It can include
• spousal maintenance,
• superannuation,
• and incidental or ancillary matters.
Why are they important?
BFAs result in greater certainty in property settlements. They allow couples who do have a relationship breakdown to take control of their financial affairs.
This results in greater certainty and avoids conflict over financial matters in the event of a relationship breakdown.
A BFA may be particularly relevant in the scenario where one party is bringing considerable family wealth into a relationship, for the protection of prior assets, or for farming properties and family businesses.
Second marriages should particularly consider a BFA.
Tax Planning
One can provide a tax effective mechanism for the division of property if there is a break down.
Who Needs Them?
• Anyone about to enter a marriage who is concerned about the inadequacies of the laws in the face of today's social realities;
• Anyone who is remarrying;
• Anyone concerned about protecting the assets of children from a prior marriage;
• Anyone who has a financially dependent parent;
• Business owners, particularly of professional practices and particularly those with business partners, because a spouse effectively becomes a silent partner in the business;
• Anyone with significant separate property in states where a spouse is entitled to a share of income from separate property.
• Anyone whose intended spouse has significant premarital responsibilities, such as alimony, child support, or tax obligations.
• Anyone cautious enough to prefer a written record of the ownership of assets to avoid confusion in the future from creditors or other family members.
A prenuptial agreement is valid only if it is created under two conditions:
1) There must be "full disclosure" between the two parties, in order that there will not be a finding of fraud, misrepresentation, or duress. Both must thoroughly disclose financial details: income, assets, and liabilities, in the document.
2) Each spouse must individually be represented by separate attorneys prior to signing the prenuptial agreement, again to reduce the risk of drafting and agreeing to an unfair agreement
Once each of the two conditions above are met, and the contents of the prenuptial agreement are satisfactory to both parties, you and your spouse each need to sign the prenuptial agreement, and the prenuptial agreement must be notarized.
Governing Law
Prenuptial agreements are recognised in Australia by the Family Law Act 1975
Contents
• Importance of finance agreement
• Who need them
• Governing law
• Assets distribution
• Full disclosure of assets
• Guideline for the agreement
• Tax planing
Reason to buy from Net Lawman
The pre-nuptial agreement from Net Lawman provides you a comprehensive range of agreements that save your time and can be amended accordingly as and when required.
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