A prenup and a prenuptial agreement mean the same thing.
‘Prenup’ is a shortened word for ‘prenuptial’.
The definition for prenup is – before marriage.
Therefore, a simple definition for a prenuptial agreement is – an agreement you make before marriage.
Prenuptial agreements are becoming more popular for a whole range of reasons. One of them is that people today are more sceptical about the length of their marriages. With an increasing divorce rate, couples are wary of the possibility that they may have long and expensive legal disputes in the future.
Another reason is that people are generally marrying later in their lives, choosing to focus on their careers and accumulate assets before they settle down. By the time they do marry, the parties may have a portfolio of property that they would like to protect. Prenuptial agreements make this easy to do.
One of the biggest dilemmas in a divorce is deciding how to divide property and assets. Many prenuptial agreements are entered into to make this process a lot simpler. They also do not want any interference from the courts, and would rather determine their own future. Sacrificing a few minutes to plan ahead, has the potential to save headaches and financial difficulties in the long run.
Financial agreements are a whole range of contractual agreements that assist couples with dealing with their assets in the event that they separate.
A prenup is a type of financial agreement. All prenups are financial agreements, however not all financial agreements are prenups.
In Australia, a ‘Binding Financial Agreement’ and a ‘Financial Agreement’ have the same meaning.