When a couple decides to marry, it’s often a decision led by love, connection and a desire to share a life together. These are all wonderful things! And in the excitement of building a life together, it’s natural not to dwell on the ‘fine print’. This is particularly true when it comes to thinking about finances.
But as life evolves, so do our financial realities. And many couples find that having a clear financial picture and plan in place to be a huge advantage. That’s where a Financial agreement can help.
If you’re looking to create a plan for your finances before, during, or after your marriage or relationship, a Financial agreement is a great choice. These types of agreements – which you can enter into any time after your marriage – can offer you and your spouse clarity, security, and peace of mind.
A postnuptial agreement – also known as a financial agreement during marriage – is a legally binding contract made between you and your spouse that you enter into after your marriage but before separation. It’s very similar to a prenup or prenuptial agreement (also known as a binding financial agreement). The main difference is that you enter into a prenup before your marriage, but you enter into a postnup after your marriage.
Both a prenup and a postnuptial agreement outline how your assets, liabilities and financial responsibilities will be managed both during the relationship and in the event that you decide to separate or divorce.
Entering into a postnuptial agreement can help you and your partner if you didn’t get a chance to finalise a prenup before the marriage, or if one partner has high-value pre-marriage assets, a business or children from a previous marriage that makes financial responsibilities a little more complex.
Some situations where you might want to consider a postnuptial agreement are when you:
It might seem strange to enter into a financial agreement after you and your spouse are already married. But there are a lot of benefits to doing so.
There may also be some downsides to entering into a postnuptial agreement.
Many couples find that postnuptial agreements actually strengthen their relationship because it encourages honest and transparent conversations and gives each person real clarity about their financial situation and future.
Having a postnuptial financial agreement put into place is a fairly straightforward process. But you do want to ensure that you have the help of a supportive family lawyer who can tailor the agreement to you and your family’s unique needs.
Here’s the process for creating a financial agreement.
A postnuptial agreement can be very straightforward, or quite complex depending on your specific family situation and assets. Depending on the complexity of your financial arrangements and the time required to negotiate or draft the agreement, the cost can vary widely.
In most cases, however, you can expect to pay between $2,000 and $7,000 for a well-drafted postnuptial agreement. This is far more cost-effective than lengthy court disputes which could arise if you separate or divorce without a financial agreement in place.
At Australian Family Lawyers, we have decades of experience and deep expertise in binding financial agreements – both prenuptial and postnuptial. Our work across Australia has saved our clients from lengthy and exhausting disputes and the costs that can arise from those types of disputes.
Whether you have a simple situation or complex circumstances, our team can provide practical legal support and guidance to ensure your assets are protected and your family is ready for the future.
Schedule a Confidential Consultation TodayThe main difference between a prenuptial and a postnuptial agreement is that you enter into a prenup before your marriage, but you enter into a postnup after your marriage.
Otherwise, both prenuptial and postnuptial agreements are types of binding financial agreements made between you and your spouse that outline how your assets, liabilities and financial responsibilities will be managed during the relationship and divided in the event that you decide to separate or divorce.
Yes. As long as the agreement meets the requirements of the Family Law Act, including that both parties to the agreement receive independent legal advice, then the agreement is legally enforceable.
Yes. To meet the requirements of the Family Law Act and ensure the agreement is legally binding then both you and your spouse must receive independent legal advice from separate lawyers. This ensures that you both understand all your rights and obligations, and the details of the agreement fully.
Absolutely! A properly structured postnup can protect your business interests, family trusts, inheritances and other valuable assets, even if those interests came to you during the marriage. This type of agreement allows you to determine how you want to handle those assets and provides clarity and peace of mind to you and your spouse.
No. A postnuptial agreement must be voluntarily entered into by both parties. If you’re keen to explore the benefits of a postnup but your partner is unsure or hesitant, get in touch with our team. We’re happy to discuss the benefits together and help you explore your options.
Absolutely. You can get a postnuptial agreement – which would be known as a binding financial agreement – even if you aren’t married. This type of agreement would be put into place after the start of your de facto relationship and would formalise the agreement between yourself and your partner with regard to your financial situation.
Read more about divorce and separation in Australia.
Postnuptial agreements in Australia: 6 important things to know
Similar to a prenuptial agreement (known as a binding financial agreement in Australia), a postnuptial agreement is entered into during a de facto relationship or after marriage rather than before marriage or de facto relationship starts.
Understanding Binding Financial Agreements in De-Facto Relationships and Marriage
A ‘binding financial agreement’, ‘financial agreement’ or ‘prenup’ is a binding legal agreement concerning financial arrangements should a marriage or de facto relationship break down. In this guide, we explain four reasons why you might need one and common misconceptions.’
Damira Hidic featured in Money Magazine: Understanding binding financial agreements
Damira’s interview in Money Magazine discusses the growing importance and use of binding financial agreements (BFAs), previously known as prenuptial agreements, in Australia.
Binding Financial Agreement Specialist Lawyers
If you’re thinking about getting married or combining households with a partner, you should consider whether a binding financial agreement is right for you.
We are a committed team of family lawyers dedicated to the swift and dignified resolution of all your family law matters. Whether you’re getting married, starting a family, separating from a partner or simply seeking some guidance about your legal rights, we’re here to support you every step of the way.
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