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You don’t have to be a superstar musician or athlete to benefit from a prenuptial agreement – in fact, you don’t even have to be married!
Known in Australia as a Binding Financial Agreement, a ‘prenup’ can be made at any stage of a relationship, whether married or de facto.
By planning for how financial matters will be settled in the case of a breakup, both partners can enjoy clarity, security and peace of mind for their future.
While prenups may lack the romance associated with wedding planning or moving in together, they offer clarity and protection that can benefit both partners in the long run.
What is a Prenup & Why
A Prenup is a legal agreement that a couple sign before they are married or enter a partnership.
A lot of couples these days either enter into a de-facto relationship or get married.
A Prenup legal agreement acknowledges what each party is bringing to the relationship and what they would like to agree to should anything go awry with the relationship. Both parties fully disclose their financial situation.
Many couples enter a relationship with property, businesses, or children from previous relationships. A Prenup untangles what each party would like to happen if the relationship were to end. Not predicting a breakup or pre-empting a break-up, merely some financial planning should it ever be needed.
Steps of a Prenup
If you’re considering a prenup, here’s a practical step-by-step guide on where to begin:
- Start the Conversation Early
Prenups require open, honest communication. Ideally, begin discussing it well before the wedding or moving in together to avoid pressure or resentment.
Frame the conversation as a mutual financial planning tool, not a sign of distrust.
- Understand the Purpose
A prenup typically outlines how assets and debts will be divided in the event of divorce, separation or death. It can:
- Protect premarital property or family inheritance
- Shield one partner from the other’s debts
- Define spousal support
- Address business interests
- Clarify rights in blended families (especially if children from prior relationships are involved)
- Inventory Your Assets and Liabilities
Both partners should prepare a complete and honest list of:
- Property and real estate
- Bank accounts, stocks, and investments
- Businesses, companies and trusts
- Debts (student loans, credit cards, etc.)
- Retirement accounts and pensions
Transparency is key—hiding assets can invalidate the agreement.
- Hire Separate Lawyers
Each partner needs to have their independent legal counsel to ensure their interests are represented and the agreement is fair. This also strengthens the enforceability of the prenup.
- Lawyers Draft the Agreement
The Lawyers draft the prenup tailored to your situation. It should be clear, specific, and comply with the requirements of the Family Law Act.
- Review and Revise
Once the initial draft is complete, both parties (and their lawyers) review it thoroughly, discuss any concerns and make necessary revisions collaboratively.
- Sign Well Before the Wedding or Living Together
To prevent claims of coercion or duress, sign the prenup well in advance of the wedding or moving in together — ideally 30+ days before. Both signatures need to be witnessed, and both lawyers need to certify that they have given the required independent legal advice.
- Store and Update
Keep copies in a safe place and revisit the agreement periodically, especially after major life changes (e.g., having children, acquiring property, career changes).
To let our team ‘Taylor’ prepare a BFA for you, contact us ‘Swift’-ly at dignitylegal.com.au