Can a Pre-nuptial Agreement Protect My Inheritance?
A prenuptial agreement is a comprehensive document that allows you to put in place certain arrangements to deal with your inheritance, as well as any other assets or debts that you or your partner may accumulate during your marriage or de facto relationship.
One way to protect your inheritance is to clearly state in the prenuptial agreement that neither spouse can make a claim against the other with respect to inheritance.
This provides clear protection for both parties, should the relationship come to an end.
In addition, the prenuptial agreement can identify the parties' interest in certain assets.
This means that it can attempt to protect inherited property from being mixed with other assets acquired during the relationship, making it easier to identify who owns what after a separation or death.
How Can a Pre-nuptial Agreement Protect My Inheritance?
A prenuptial agreement clarifies how property will be divided between parties in the event of a separation.
But the question that many people ask us is, "Can a prenuptial agreement protect my inheritance?"
Generational Wealth is like a gift that keeps on giving, passed down from one generation to another.
It's a big deal when parents try to safeguard their assets and make sure that their family's fortune doesn't get blown away by an ex-spouse. Inheriting this wealth is a huge responsibility, and having a prenup is like an extra layer of protection that ensures that this legacy remains intact for future generations.
This kind of wealth can come in many shapes and forms, such as owning family businesses, holding a vast real estate empire, or investing in high-value stocks, bonds, and other financial assets.
It takes a lot of sweat and tears to build this kind of wealth, so it would be terrible to watch it crumble to bits due to a messy divorce.
While having a prenup doesn't necessarily guarantee that you will pass down a huge fortune to future generations, it does offer peace of mind that this wealth is protected, and there is still hope for a lasting legacy.
What Is a Prenuptial Agreement?
A prenuptial agreement is a legally binding contract entered into by two people prior to marriage or a de facto relationship. It outlines how assets, income and debts will be managed if the relationship should end by separation.
A prenup can be tailored to cover the assets you've amassed before tying the knot, allowing you to cement your arrangements and future.
Similarly, if you anticipate a sizable inheritance down the line, a Prenup can ensure your partner won't be able to lay claim to it.
In fact, you can even create a Prenup that specifically shields the assets you hold most dear. To stay current and in sync with changes in your lives, you can tweak and update your Prenup every few years or when life events like a new addition to the family call for it.
And since Financial Agreements can be fashioned during the marriage, you're free to swap out and supersede old agreements whenever necessary to reflect your current state of affairs.
Make sure that your prenuptial agreement is valid by following the criteria stipulated in s90g of the Family Law Act or you can read our article on How valid are Prenuptial Agreements in Australia.
Why you should consider a Pre-nuptial Agreement to protect Inheritance
An inheritance is something you can protect from getting tangled up and unraveled (like your marriage).
Recent findings indicate that nearly 70% of millennials anticipate receiving an inheritance in their adult life.
If you are one of the lucky ones to receive some type of financial benefit from your parents (or any relative for that matter), then you should secure it before entering a lifelong commitment with your lover.
Final Thoughts
Question: Can A Pre-Nuptial Agreement Protect My Inheritance?
Answer: Yes it absolutely can.
A prenuptial agreement is an important legal document that can help ensure your inheritance is protected if the relationship should come to an end.
To make sure you are fully informed, it is best to get legal advice from a specialist family lawyer.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.