Keith Urban and Nicole Kidman are amongst many celebrities who signed a prenuptial agreement before marrying.
But, a prenuptial agreement is not just for people with million dollar assets. In Australia, prenuptial agreements are generally enforceable.
The legal term for a prenuptial agreement in Australia is a Binding Financial Agreement (BFA). It is a way of protecting your assets if the marriage ends. It is particularly useful where one partner has significantly more assets than the other.
But, the BFA must be drafted properly or it may have no effect. The legal requirements for making a valid BFA are strict. The following steps must be followed:
- Each party must get independent legal advice
- The advice must come from a lawyer working in Australia
- The agreement must be in writing
- The agreement must be signed in the presence of a lawyer
- The agreement must contain a complete disclosure of assets, liabilities, expenditure and income
In the past, some BFAs have failed because there has not been full disclosure by one party or a person has been pressured in to signing the document.
To make sure that your BFA is accepted by a court, ensure you seek advice from a specialist family lawyer.
