For a contract to be applicable, it must be fair. For such an agreement to be considered fair, it must be consistent with the principles of the Property (Relationships) Act. These requirements are intended to protect people who enter into a contract, because an agreement has the same effect as a court decision and cannot be easily overturned. A contract is not suitable for everyone – many people are happy to share their property equally in the event of separation or death. However, entering into a contract is useful for couples who bring significant assets to the relationship, whether they wish to remain separate owners or to support children from previous relationships. The four tips make sure that you have a secure agreement that offers security for the future. However, it is often helpful to have discussions about entering into contracts earlier in a relationship, only in case your partner refuses to enter into one. As a general rule, people are more likely to accept an agreement if they are not yet entitled to the other person`s property. It`s never too late! Even if you have exceeded the three-year threshold, we can continue to help you if you and your partner accept the protection of certain properties. Please contact our family lawyer, Rebecca Kroeze, if this article asks you any questions.
A contractual agreement can be reached at any time: upon the arrival of the contract, during that relationship or at the end of the relationship. Agreements are often used by couples who, later in life, form a second or later relationship, especially when they already have a considerable fortune that they wish to retain as a separate property. However, it is important that an agreement be reached before the relationship or civil union lasts three years, as the rights will change on that date. „Pre-nuptial“ or contracting have become more popular since changes to the Property (Relationships) Act. Under this act, there is a general presumption that there will be an equal sharing of relationship capacity as soon as the relationship has existed for three years or more, as in the case of separation. Under the Property (Relationships) Act, the family home, furniture and are relational property, no matter when and by whom they were purchased. This can have serious financial consequences if a party owns the family home prior to the relationship. Many people think that if they transfer the family home into a trust during a relationship, then this will not be included in the relationship property pool.
It`s not fair. For a modest price, entering into a contract can prevent you from losing thousands of dollars during separation. There is often a negative connotation that surrounds the idea of signing what is commonly referred to as „pre-nup.“ But that`s not necessarily the case. Before starting a new relationship, the parties may have received significant assets or money funds that they wish to recognize as their own. This does not mean that you are preparing to divorce, but that you can be an exercise in trust. The motivation for signing a contract should not be to prevent a party from getting a „slice of cake“. The new relationship may have created a merged family and the parties may have obligations to their own children in the event of death. The procedure for the proper conduct of a contract requires that each spouse or partner have his or her own independent lawyer. Whether you want to protect your assets or the person who is invited to sign a marriage pact, we can help.