Financial Agreements for Marriage – Prenup and Postnup

For many people, these new marital arrangements and circumstances need to be considered when entering the marriage contract.

Financial Agreements, specifically the prenuptial agreement (before marriage) and the postnuptial agreement (after marriage) allow the couple to formally set down in writing how they would like to divide their property (assets, debts) and maintenance issues in the event of a separation.

In fact, a financial agreement is the only legal instrument available at this time, if you want to protect or quarantine assets (or debt). 

These agreements offer a practical way for couples to outline how assets, debts, and other financial matters will be handled if their relationship ends. It provides clarity and peace of mind by addressing the “what if?” questions upfront, giving both parties confidence about the future.

They allow couples to manage their financial and practical affairs, serving as an alternative to costly and stressful court proceedings. By agreeing in advance on how matters like spousal maintenance and the division of property will be handled, couples can avoid having these decisions imposed by the court.

Financial agreement for continuing relationships offer reassurance for couples entering marriage, helping to save time, money, and emotional strain in the future.

Let’s take a look at real life scenarios of how couples are using these agreements

How a Postnup 90C Agreement can be used

Kathy is a savvy business woman who has worked hard to build her own business and buy her own home. After a whirlwind romance on a cruise, she has fallen in love with Peter, a good looking bus driver with a sharp wit and a 1978 Land-Rover.

Now even though the newlyweds are very much in love and they intend living happily ever after, Kathy is worried she may have rushed into the relationship without thinking about the financial ramifications of the marriage. Both she and Peter agree that if things don’t work out and the relationship breaks down then Peter will not make any claim for the house and business assets which Kathy has worked so hard to acquire. Kathy wants nothing to do with the Land-Rover.

To finalise this arrangement they should make a BFA under section 90C of the Family Law Act. This will effectively isolate all of Kathy and Peter’s pre marital assets from their post marital assets, paving the way for a happy future together without suspicion. This type of agreement is sometimes known as a post nuptial agreement .

How a Prenup 90B Agreement can be used

Leon is the son of a moderately wealthy farmer. In fact the family farm has not changed hands in over 100 years and the management and ownership has just been passed down to Leon. He and Andrea met 6 months ago and they have decided to get married. Even though both parties are devoted to one another, Leon is worried that should the marriage fail Andrea could make a claim for this valuable family asset. The couple have agreed in principle that Leon’s family farm should be kept out of any future dispute and shall remain in his ownership and control.

Leon can protect the asset by pre determining how the farm should be dealt with by entering into a Binding Financial Agreement made under section 90B of the Family Law Act. This type of agreement is commonly known as a ‘pre nuptial’ agreement. Entering into a BFA now will also remove any doubt and uncertainty which can often lead to arguments and in doing so can actually strengthen the relationship.

The prenup agreement can be made before the wedding takes place and is the marital agreement most people are familiar with.

The postnuptial agreement can be made anytime after the wedding.