Most people enter their marriages with the goal of living out their lives with the people they love. However, sometimes that doesn’t happen and a couple gets divorced, which can sometimes turn ugly due to disputes over marital assets and child custody arrangements. To protect yourself financially, you should consider these reasons for writing a prenuptial agreement.
If you’ve brought assets such as property, cash, or investments into the marriage, having a prenuptial agreement or Binding Financial Agreement (BFA) written can help you protect them if you happen to divorce. During negotiations to divide property prior to a divorce, the agreement can be considered when trying to divide marital assets.
Along with protecting your assets, a BFA can also protect the other party’s assets as well. The agreement can be written so both of you can account for the assets that you had prior to being married and they can be considered when making property divisions during a divorce.
For couples who were married before and have children, a BFA can protect the assets brought into the marriage so they can be protected for the children’s inheritance. A BFA doesn’t just protect assets in the event of a divorce but when you die, it can help ensure that the assets you brought into a marriage are divided per your wishes. It is a good way to make sure that your children, grandchildren, and others will receive their inheritances.
If you own a business or have intellectual property such as publishing rights, then you can ensure that the BFA protects it. If it is not listed in the BFA and you end up divorcing or dying, then your spouse could inherit at least a share of the business. If you have a business partner, you want the business to go to your children, or there is a succession plan in place for your company, you should also have it included in a BFA to ensure its protection.
Protection against Debt
If your new spouse or partner is bringing a large amount of debt into the marriage or de facto relationship, then a BFA can keep you from being responsible for it. Without an agreement in place stating that you are not responsible for prior debts, creditors could come after your assets to pay those debts. It is important that both parties are represented when a BFA is written so you need to hire a solicitor who specialises in family law in Adelaide to help negotiate the agreement.
A prenuptial agreement needn’t be a deal breaker for an impending marriage if it is presented correctly. However, it can be a good way to find out if someone is marrying you for your money, businesses, or other assets that you own.