Why get a prenup?

So you’re not a celebrity power couple like Beyoncé and Jay-Z or a billionaire on his third marriage like Rupert Murdoch, but you and your partner are getting divorced. So… do you have a prenup?

Not married? Perhaps you are separating from a de facto partner, do you have a relationship agreement?

Prenuptial agreements seem to be a thing for the rich and famous or the greedy or unromantic and have always been highly publicised in celebrity divorces. Relationship agreements on the other hand are virtually unheard of but have the same unromantic feel of anticipating separation.

So why bother getting either? Despite their notoriety in the celebrity world prenuptial agreements are not just for the rich and famous. In fact, more couples are signing prenuptial and relationship agreements than ever before.

An overwhelming amount of legal experts have suggested that given the current economic climate, everyone should at the very least consider a prenup or relationship agreement.

It is not about anticipating the end of the relationship, it’s about best protecting your future against the uncertainties of life. As famous philosopher Plato once said, “the only thing certain in life is uncertainty.” So why gamble with your life savings? This is not a matter for the heart but one for the head. Let your heart take care of being in love and thriving in your new relationship and your head take care of the practicalities.

No one entering a relationship ever wants to think about it ending but it is always a possibility. If you don’t have an agreement you could be the one paying the price in the future, pun intended.

So what exactly do prenuptial or relationship agreements do? Both of these agreements not only cover current assets, but they also give people control over their future assets including acquisition of property or developing a successful business. Couples are also signing prenups in order to fairly divide their debt. Medical bills, student loans and large credit card debts can also be included.

What about older couples who are already married and have a mortgage or other forms of debt? For couples in this position, it is never too late to sign a postnuptial agreement. Sometimes this might be important in 2^nd or 3^rd marriages where there are children on both sides.

Although matters relating to the well-being of children, child support or child custody is not included in a prenuptial agreement, you can still protect any children of the relationship by ensuring you are financially in a position to care for them if things go wrong.

Discussing assets and whether to enter a prenuptial agreement is a healthy conversation for any couple. It has been suggested that a prenuptial agreement may even help prevent divorce by anticipating future economic hurdles.

If you do forego signing a prenup because you feel it is unromantic and you find yourself facing divorce or separation, there are options such as collaboration and mediation that can keep you out of court.

A prenuptial agreement however, can help to reduce your financial costs at what is already a financially and emotionally taxing time. You can make decisions about you future in a clear and collected headspace before the emotional turmoil of separation.

At Resolve Conflict Family Lawyers & Mediators, we help separating couples reach agreement out of court in the most cost effective way possible.

For more articles please visit the Resolve Conflict Blog here. If you have any queries on Prenuptial Agreements, Family Law or Mediation please don’t hesitate to contact us on 03 9620 0088 or email info@resolveconflict.com.au