It may not be the most romantic topic as we wave goodbye to Valentine’s Day, but let’s discuss the merits of prenuptial agreements. Many people dread the phrase or think that is tacky, but the reality is that a prenuptial agreement provides the legal means for married or de-facto couple’s to designate which assets go where when the relationship ends.
Contrary to popular belief, a prenuptial agreement is not just for the rich and famous. Many normal couples are opting for a written agreement to protect the financial assets each partner brings to the relationship.
What is commonly known as a prenup or prenuptial is actually referring to a binding financial agreement under the Family Law Act. There are three types of binding financial agreements – before marriage, during marriage and after separation.
In the modern-day, it is far more common for men and women to have extensive financial resources and holdings than it ever has been before. This is because people are often entering into their second, third or fourth relationship or because they are not getting married until much later in life, therefore, they have acquired far more individual wealth before entering their relationship.
A prenuptial agreement allows people in relationships to protect themselves in the event of any unforeseen circumstances. Let’s face the facts, half of the marriages come to an end, so maybe it is not so silly to be organized and plan ahead.
So should all couples have a prenuptial agreement? It’s entirely up to the couple in question. If assets are a question, then a prenuptial may provide a couple with security that they are marrying each other for the right reasons and not for financial gain.