A ‘Pre nuptial agreement’ is the term often used to describe a Binding Financial Agreement which is entered into by the parties before a marriage (or de facto relationship).
A Binding Financial Agreement is an agreement entered into between the parties to a marriage or de facto relationship to determine how their property and financial resources will be divided in the event of a separation. These agreements can also cover the maintenance of the parties. A Binding Financial Agreement can be entered into before, during or after a de facto relationship or marriage.
The Binding Financial Agreement entered into before a marriage or before the de facto relationship is intended to prevent the parties from subsequently bringing a claim in Court for property settlement, or spousal maintenance if the parties separate. The Agreement sets out what will happen to each of the parties' assets, liabilities and financial resources in the event that they separate; namely who gets what.
People are now more than ever looking to protect their assets from a potential claim from a former partner. Unfortunately there have been a number of recent cases in which these Agreements have either been declared non-binding or set aside by the Court. This is an area of the law that is very technical and constantly changing.
Our view is that such Agreements are not appropriate in all situations and accordingly we do not prepare them in all situations, but that there are still circumstances where such agreements are appropriate. In each case we make an assessment of the party's particular circumstances and if appropriate, we can assist you by preparing a Binding Financial Agreement to protect your property.
If you would like to look at your options regarding protecting your assets, contact us for a consultation at any one of our metropolitan Adelaide or South Australian regional locations.