A contracting out agreement (sometimes known as a “prenuptial” agreement – or “pre-nup”) enables couples to contract out of the Property (Relationships) Act (“the Act”) and enter into their own private agreement to determine the status, ownership and division of their property upon separation or death. You can enter into a contracting out agreement at any time: upon entering a relationship, during it, or at the end of the relationship, however it is advisable to do so prior to your relationship reaching the two-year mark.
There are important requirements that must be complied with, as stipulated under s 21F of the Act, if the agreement is to be valid:
- The agreement must be in writing and signed by both parties.
- Each party must get independent legal advice from separate lawyers, prior to signing the agreement.
- The signature of each party to the agreement must be witnessed by their lawyer.
- The lawyer who witnesses someone’s signature must also certify that, before the person signed the agreement, the lawyer explained to that person the effect and implications of the agreement.