“When I was in my 20’s, I couldn’t afford to buy my partner an engagement ring. So I told my then girlfriend to lend me her savings for a ring and to trust me that it would all work out,” an older relative recounted over lunch one afternoon.
Having consumed my fair-share of swindler stories, I was horrified at the prospect of trusting anyone with my life-savings, let alone a short-term partner.
While the said relative’s proposition did in-fact turn out to be a genuine investment (and ultimately paid dividends in the form of a long happy marriage), I was glad that women everywhere seem to have wised-up when it comes to securing their savings.
With the average female employee pocketing $84,402 per year in an annual salary, protecting our income has never been more important, especially factoring in the economic set back of a glaring gender pay gap.
So, it comes as no surprise that a growing number of Australian women are floating the idea of a ‘non-marital prenup’ aka a Binding Financial Agreement (BFA) to protect their assets and their asses later down the line.
Once perceived as a complex contract reserved for celebrities and the mega wealthy, as cost of living pressures build and the modern relationship grows ever fluid, more young couples are finding themselves eager to sign their names on the dotted line.
Why Are Prenups Growing In Popularity?
According to Australian Family Lawyers, enquiries for BFA’s almost doubled between 2022 to 2023, with other Australian family law firms reporting that requests for BFAs jumped more than 79 per cent in the past year.
While it’s easy to assume that a lack of trust is at play, experts argue that one of the biggest drivers is the reliance on the ‘bank of mum and dad.’
As more young couples turn to their parents to go guarantor on a home loan or help cover their house deposit, there’s a greater pressure to tie up any loose ends on a seemingly no-strings arrangement.
What Do I Include In A Prenup?
Proposing a prenup might feel like a romance killer, but trust us when we say there’s nothing sexier than the feeling of driving away in the car you bought (and now solely own), after you caught your partner cheating.
Once you’ve decide to have the chat, it’s important to come prepared with an idea of what you want the prenup to cover. If in doubt, here are some great starting points:
- Properties (including your primary place of residence and any investment properties)
- Mortgage debt and bank/ credit card debt
- Cars or motorbikes
- Assets from a family trust
- House contents (e.g. furniture, artwork)
- Pets
- Joint and separate bank accounts
- Superannuation entitlements
- Shares
- Any other valuable items (your prized jewellery, watches and designer bag collection)
How Do I Request A Prenup?
After you and your partner have both agreed to a request a BFA, in order for the agreement to be legal and binding it must be prepared by a lawyer to ensure it complies with the Family Law Act.
Your BFA must be prepared by a lawyer (a family lawyer is a good place to start), who will act soley on your behalf.
Once each party has signed the BFA to say that they have obtained their own independent legal advice, your agreement becomes valid and you are free to move on with your relationship with the peace of mind that you are protected should things go south.
What Happens If My Partner Refuses To Sign A Prenup?
Broaching the topic of a prenup should always be handled with sensitivity, not only can it instil feelings of distrust and a lack of faith in the longevity of the relationship but conversations around ‘ownership’ can easily take an uncomfortable turn.
Be truthful with your partner about the reasons you want a prenup and remind them that it is a mutually beneficial agreement that removes any financial pressure from the partnership so that the focus is solely on your romantic union.
If your partner still refuses, then unfortunately the writing is on the wall instead of in a legally protected document. Seek your own legal advice on how to carefully navigate the next steps.
There are very few occasions where we would take advice (especially legal) from controversial rapper, Kanye West (who experienced his own two year long divorce battle with Kim Kardashian) but on this occasion the words in his popular 2005 hit ‘Gold Digger’ lend some wisdom on the subject: “Holla, we want prenup! We want prenup! It’s something that you need to have.”
This article originally appeared on Marie Claire Australia and is republished here with permission.
