The subject of a prenup agreement won’t emerge for most couples. Whether they are in a heterosexual, same sex or de facto relationship, the desire to sign an official document stipulating the terms can be non existent, especially for some partners.
However, there is an understanding with other community members who venture forward willingly with a Binding Financial Agreement or BFA for short, helping them to draft a package before, during or after the relationship to divide the assets.
There is no right or wrong answer here that applies to all couples. It is a unique set of circumstances where individuals have to make their own judgment, weighing up the positives and negatives of the program.
Positive: Control of the Outcome
Taking a Family Court environment out of the picture in the event of a breakup is one of the real standout appeals for signing a prenup agreement. In the aftermath of a BFA being drafted between both parties, they acknowledge that they have control of the provisions and will only sign when both sides accept the terms willingly. Those who bypass this step take their fate in the hands of a Family Court, rescinding any control they could have had over the process.
Negative: Partner Power Game
Some couples can feel some tension between them and their partner following the prenup process. Especially when one side is holding a sizeable amount of assets while the other is left with modest returns, it can create a bit of division that would previously have not have existed. The idea that one side could benefit from separation while the other is worse off can be a major downside, but it is important to stress that a BFA has to be agreed upon by everyone to be certified.
Positive: Customised Agreement
From property rights to business interests, loan deals, stocks, vehicles and other components that are in play, a prenup agreement can be customised to meet the needs of all parties. This degree of flexibility helps those participants who want to ensure that the assets and liabilities that matter to them most are taken care of. It does not have to include or exclude anything that they want to cover as part of the terms.
Negative: The Unspoken Implication
One of the issues that people have with these types of agreements is that they are already laying the groundwork for a separation. The unspoken implication here is that the pair will eventually go their separate ways and engaging in this process is affirmation of that eventuality. It does not have to be the case but with approximately one in two marriages ending in divorce, the odds of a breakup almost weigh in favour of that circumstance being realised.
Positive: Peace of Mind
When citizens go through the program with a prenup and allow the BFA to be formulated and certified, everyone can move on with the rest of their lives. They know that they will be entitled to a certain amount of assets and have to cover certain liabilities, but they don’t ever have to play a guessing game or speculate about who owes what. That delivers peace of mind for constituents who are calm about the entire affair.
Negative: Cost of the Process
There are logistical costs involved in drafting up a prenup agreement. When dealing with lawyers and the development of a BFA, there will be fees involved. That is a downside for anyone, but especially for those couples who are already living with tight budgetary constraints.
The reality is that couples should look at a prenup agreement according to these principles and assess if it is appealing to their own situation. Those citizens who have been divorced or separated before will likely be more inclined through a second or third marriage, while the size and nature of the assets could also influence the outcome. Take careful note of what is on display with these provisions before getting in touch with legal counsel to discuss the matter further.