Contracting Out Agreements

Contracting Out Agreements - Legal Solutions N

Let’s talk about Contracting Out Agreements, which are also frequently referred to as prenups.

I know that the concept of a Contracting Out Agreement is not necessarily romantic, but they often form the backbone of a happy, healthy and respectful relationship.

Long gone are the days when you would arrive in a relationship with a glory box full of tea-towels and knick-knacks handed down by aunts and uncles. These days, many people enter a relationship with a large portfolio of assets that they have produced from their own efforts prior to the commencement of their new relationship.

It is understandable then, that these parties wish to protect their separate property, those assets which they have already produced from their own separate effort.

In this regard, Contracting Out Agreements are appropriate for a large array of people in our community.

From a young person entering a relationship for the first time, through to a retiree whose husband may have passed recently and they wish to protect as their separate property and protect for their children, those assets which were acquired during their relationship with their deceased partner.

A Contracting Out Agreement is simple in terms of what is required to meet the law and have that agreement upheld:

  • Firstly an agreement needs to be in writing.
  • Secondly the parties to the agreement need to have been given independent legal advice prior to entering into the relationship.
  • Thirdly, the parties have to have explained to them by their solicitor, the effects and implications of the agreement.
  • And finally the solicitor needs to certify that the implications and effects of the agreement have been explained to the parties and that they have given full independent legal advice.

If you think that a Contracting Out Agreement might be appropriate for you or someone else that you know, please don’t hesitate to contact us at Legal Solutions.