Whats is a Prenupital AgreementAug 1, 2016 12:00:00 AM
A prenuptial agreement or pre-nup is the colloquial name for what is formally known as a 'Binding Financial Agreement' (BFA). There are three main types of BFAs which can be undertaken before or during a marriage and after separation.A prenuptial agreement is the common phrase used to describe a financial agreement made before marriage and can be made in relation to:
- How all or any of the property or financial resources of either or both of the parties is to be dealt with in the event of marriage breakdown
- The maintenance of either party during the marriage and/or after marriage is dissolved
- Any other incidental matters related to the above
The pre-nup sets out how the asset should be split should your relationship not work out. It's becoming a very common practice due to over 30% of all first marriages end in divorce. Is it any wonder then that prenuptial agreements are gaining in popularity?
The old saying is fail to plan and you plan to fail. Although it's an unpleasant conversation, it may be better to consider and take action when your relationship is amicable.
For a Pre-nup to be legally binding both parties must have:
- Signed the agreement
- Been in receipt of independent legal and financial advice before signing it, and
made a full and frank disclosure of all assets, liabilities, income and resourcesReturn to Blog