Why Prenups Are Actually Romantic

Nobody gets married with the thought of getting divorced, so often a prenuptial or financial agreement is seen as unromantic or worse, assuming the relationship will end at some point.

However, another school of thought is that a prenup agreement is just a safeguard, comparable to insurance, nobody plans on having their house burn down, but sometimes unforeseen things do happen to all of us. A prenup is akin to ‘relationship insurance’, if you have it you’re less likely to need it.

What is a Prenuptial Agreement?

A prenuptial agreement, known as a Binding Financial Agreement in the Family Law Act, is a legally binding financial agreement between two parties to a marriage or de facto relationship, that stipulates their financial agreement should the relationship break down.

The Family Court of Australia states;

You can make a financial agreement before, during or after a marriage or de facto relationship. These agreements can cover:

• financial settlement (including superannuation entitlements) after the breakdown of a marriage or a de facto relationship
• financial support (maintenance) of one spouse by the other after the breakdown of a marriage or a de facto relationship,
• any incidental issues.

For a financial agreement to be legally binding, you must both have:

• signed the agreement, and
• received independent legal and financial advice before signing.[1]

Why Prenups (Binding Financial Agreement) Are Actually Romantic

1. A prenup forces you to talk openly and honestly about your finances

Recent research shows that Australian couples regularly argue about money, more than other issues in their relationships. This may be contributed to the fact that many couples find it hard to talk about money. Money is often a very personal topic, as well as many couples having very different experiences and different values about money. A Binding Financial Agreement, facilitated by an experienced and sensitive lawyer, can help prepare you for a lifetime of financial health and help you create a strong foundation to discuss finances and save you countless arguments in the future.

Related Article: 7 ways to prevent money from ruining your marriage

2. A prenup helps you plan your financial future together

Discussing your future financial goals together helps both parties understand what each other is wanting for the future, be it buying a house, going travelling or having children. Understanding these goals and timelines will undoubtedly reduce stress and dissatisfaction within the relationship later on.

Through this discussion you can opening disclose both parties’ current financial situations, attitudes towards spending and saving as well as working out who or how the household finances will be managed.

As you can see a prenup doesn’t have to be all doom and gloom for a couple, it in fact can pave the way to a healthy and happy relationship for couples and their finances.

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

[1] 2016, What are financial agreements?, Family Courts of Australia, viewed 14 March 2018, http://www.familycourt.gov.au/wps/wcm/connect/fcoaweb/family-law-matters/property-and-finance/if-you-agree-about-property-and-money/