Should I get a Prenup?

We often hear a lot of clients ask us, should I get a prenup?

 

32% of marriages end in divorce. Hope for the best, & prepare yourself with a financial agreement.

 

Financial agreements include prenup agreement’s but also include agreements during and after a marriage. The agreement outlines the arrangements to occur if the relationship ends.

Should I get a prenup? What are the pros and cons?

If you are living in Australia, 32% of marriages end in divorce.

 

When asking yourself, “should I get a prenup?”, remember that preparing for the worst is not just a smart idea. It is a necessity in today’s day and age. No one own’s a crystal ball to determine what relationships will and won’t last.

 

Pros

    • Prenups are an effective strategy for both defending your assets and dissolving future conflicts.

 

    • You get to make your own rules about what will happen if things turn pear shaped.

 

    • It is better do this while things are good in the relationship. Once things turn sour, negotiating becomes very hard.

 

    • It is less stressful and a more cost effective way to make decisions.

 

    • Prenups can be used to protect and certain assets, especially initial contributions made at the beginning of the relationship.

 

    • You can also protect potential future inheritances.

 

    • It can provide some peace of mind for those who may think that their partners are entering into a relationship with them for their money.

 

    • You can get a stamp duty exemption if you have a proper prenup in place.

 

    • A prenup can also be an effective estate planning tool to ensure assets are passed down to people as intended.

 

What will I receive from the outcome of my divorce?

Cons

 

    • Your spouse may not like the idea of signing a prenup. They may see it as unromantic or of no benefit to them.

 

    • It is an upfront investment that you may not have to use in the future.

 

    • The conditions of the agreement may be unfair to one of the parties.

 

    • Both parties will need to get separate independent legal advice for the prenup to be valid.

 

    • There are circumstances in which a prenup can be considered void and of no use.