Fernwood Jan Feb 2020

5 PRENUP No one wants to think about their relationship ending when it’s just begun, but sometimes it’s better to take a cautious approach. to get a REASONS

them if your relationship breaks down. It will also cover any increase or change to those assets. And you don’t need to be rolling in money to benefit from a prenup, says Fiona. “In the past, prenups were more common when there was a big inequality of wealth – when one person came in with a lot of assets and the other with nothing. They’re still more common in that situation, especially with second marriages, but they’re now becoming a lot more common among all sorts of people.” You plan to have kids Including a provision for any children you might have can mean the primary carer is entitled to more of the asset pool. “Even though prenups are still not 100% guaranteed, you’re certainly better off having one than not having one in this situation,” Fiona explains. Plus, signing a prenup saves your future children from being stuck in the middle of any disputes. You’re expecting an inheritance Do you stand to inherit the family home or other investments? Perhaps you know you’re listed as the beneficiary of a will of a childless relative. A prenup can protect not only assets you hold now, but those you’ll obtain in the future. “The main point of a prenup is to protect assets that people come into a relationship with, but it can be also used for assets that are acquired during your relationship,” says Fiona. You want control over your finances A prenup isn’t cheap, costing upwards of $5000 in many cases, but it’s a lot cheaper than a complicated divorce

ANGELA TUFVESSON T he Christmas and new year period is a peak time for getting engaged thanks to all those feel-good festive vibes. However, whether you’ve got a ring on your finger or not, you’ve probably heard one in three marriages ends in divorce. Depressing, but true. According to recent statistics, the average length of these marriages is 12 years, which is plenty of time to buy property, squirrel away retirement savings, inherit family money and be financially responsible for kids – all of which must be divvied up in a split. So it’s no surprise to learn a growing number of couples are taking a pragmatic approach by signing a

prenuptial agreement before tying the knot. In Australia, lawyers call it a “binding financial agreement” and it lays out how your assets will be divided if your marriage breaks down. “What we’re seeing is that as family law becomes progressively complicated, prenuptial agreements are becoming more commonplace,” says Fiona Reid, founder and managing director of Reid Family Lawyers. “People are recognising that they don’t want to get embroiled in a Family Court dispute if their relationship ends.” Unsure whether you should get a prenup? Here’s why it might be right for you. You have assets If you enter a marriage with any significant assets – think property and investments – a prenup will protect

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