More Aussies are getting behind signing prenups before walking down the alter, with one family law firm reporting a 79 per cent rise in requests in the past year alone.
Prenuptials, better known in Australia as a Binding Financial Agreement (BFA) are typically used by those possessing significant wealth or large inheritance.
Over the decades, it’s had a negative stigma attached to it as it was seen as a lack in trust in partners if one was requested.
However Australian lawyers have noted a substantial rise in people requesting BFAs, following a spike in divorce applications during the Covid pandemic.
What appears to be driving this desire for BFA before and even during a marriage is due to the economic environment.
Speaking on Channel 10’s The Project on Wednesday, family lawyer Kasey Fox said high interest rates and the rising cost of living is pushing more people to seek protection for their wealth, assets and the “bank of mum and dad”.
“People are worried about things like inheritances,” Ms Fox, from the Farrar Gesini Dunn law firm, told the program’s hosts.
“So if they know that their family have some more wealth on their side, they want to make sure an inheritance will be theirs and their partner can’t make a claim on it.”
Ms Fox also said couples with children from a previous marriage are thinking of their children when entering a new marriage.
“For example, (couples) have children from a previous relationship. And they might want to say ‘well, I want to make sure that my house that I had at the start of this relationship is going to be protected, so I can leave it to my children in the future,” she said.
“We focus on what’s a fair split.
“So generally something like: ‘What you have is yours and what I keep is mine.’ And anything we get together we divide jointly.”
Co-host Myf Warhurst reminded the panel that “marriage was always a contract”.
“From the beginning of time, it’s been an exchange of goods and commodities essentially. That’s the agreement,” she said.
“Someone makes money out of it and somebody gets cared for. So I think it’s probably rational to have a prenup.”
This sound financial advice is resonating with many Aussies, who voiced their agreements.
“I think it would give more clarity around whose getting what out of the deal,” one woman said.
However, despite the increase in prenup requests, the negative stigma attached to it is still hanging on strong.
“If you can’t trust the person, then don’t get married,” one man said