‘Prenup’ is a shortened word for ‘prenuptial’.
The definition for prenuptial is – before marriage. Therefore, a simple definition for a prenuptial agreement is – an agreement you make before marriage.
Prenuptial agreements are becoming more popular for a whole range of reasons. One of them is that people today are more sceptical about the length of their marriages. With an increasing divorce rate, couples are wary of the possibility that they may have long and expensive legal disputes in the future.
Another reason is that people are generally marrying later in their lives, choosing to focus on their careers and accumulate assets before they settle down. By the time they do marry, the parties may have a portfolio of property that they would like to protect. Prenuptial agreements make this easy to do.
One of the biggest dilemmas in a divorce is deciding how to divide property and assets. Many prenuptial agreements are entered into to make this process a lot simpler. They also do not want any interference from the courts, and would rather determine their own future. Sacrificing a few minutes to plan ahead, has the potential to save headaches and financial difficulties in the long run.
Couples at any stage of their relationship can enter into such an Agreement. Heterosexual or homosexual (de facto) couples can both enter into a BFA. The types of Agreements and their relevant sections are the same for opposite or same-sex couples.
Both parties intending to enter into a BFA must ordinarily reside in Australia. Each party must also get Independent Legal Advice from different lawyers working in different law firms. The lawyers must also sign a Certificate confirming that the advice, as required by the Family Law Act 1975 (Cth) was given to their client before their client signed the Agreement.
You cannot enter into a BFA if you are already in a valid BFA with another person. For example, you wouldn’t be able to enter into a BFA with a mistress if you already have a BFA with your wife.