Safeguarding Your Future: Essential Tips for Protecting Yourself in Your Next Relationship
There is no doubt that separation and divorce is costly, not only emotionally but financially too.
You may have lost your home, financial stability, reduced time with the kids, loss of mutual friends and feel like you have been to hell and back!
Over time you heal, you rebuild your life, yearn for love, connection and companionship. All of a sudden, you find yourself in a new relationship. You are head over heals in love, extremely happy and sure this is the one!
Let’s face it, it was bound to happen. According to James Sexton, America's top divorce lawyer, advises that 86% of divorcees remarry within 5 years!
It may have taken years to rebuild your life to become financially secure again, so do you really want to lose what you have rebuilt since your last separation and divorce?
It is very prudent to get a pre-nuptial agreement in place, or what is commonly called a pre-nup and also widely known as a Binding Financial Agreement (BFA). Whether you are just living together or contemplating marriage, you may want to safeguard your financial security.
The family law act 1975 s90G sets out when financial agreements are binding as well as enforceable in s90KA.
So why should you get a pre-nup?
There are a few reasons to consider, as you may –
1. have more assets than your new partner which you want to secure.
2. have children from your previous marriage that you want to ensure your assets remain their inheritance.
3. have real estate or a business that you want to protect from future financial separation as well as include provision of how assets you buy together will be divided upon separation.
4. not want to end up in court again battling it out over financial settlement if your new relationship ends.
5. including provisions for children you may have in the future in your new relationship.
So, how do you mention to your new partner you would like a pre-nup before you move in together, or get married?
It is a sensitive question which could create doubt in your partner of your commitment to the longevity of the relationship. Your partner may feel you mistrust them or are shocked you would even suggest getting a pre-nup! Plan your conversation ensuring you outline you think it would be a good idea to protect both yours and your partners assets. Ensuring it isn’t just about you, helps create a joint discussion. Taking the conversation to how you secure assets that you both buy together to ensure they are protected.
It is important to note that your pre-nup can become invalid if financial information is omitted, or someone signs the pre-nup under duress by way of threatening the relationship will be over if they don’t sign. If significant changes occur over time which provisions have not been included, such as if one party loses employment, becomes gravely ill or a child is born from this union can also have the pre-nup set aside by the court.
So how do you put a pre-nup in place?
Simple Separation offers pre-nups to couples by enabling them to collate both parties’ financial assets, liabilities and superannuation. The couple will then determine how they might divide or retain assets if they were to separate and receive independent legal advice separately to ensure their agreement can be legally binding. Their independent lawyers will then certify their agreement.
Author – Cheryl Duffy, Divorce Coach, Family Dispute Resolution Practitioner, NMAS Mediator and Parenting Coordinator