The purpose of the Act is to recognise the contributions of both partners to their relationship, and to provide for a fair division of property when the relationship ends, taking into account the interests of their children. Without a Relationship Property Agreement, the general rule is that all property and assets obtained during the relationship will be divided evenly. There are exceptions, especially when a relationship has lasted less than three years. In that case, assets may be divided according to each person’s contributions to the relationship, including non-financial contributions, rather than everything being shared equally.
But do you really want the Court to make such important decisions for you? If you don’t have anything documented, it could mean that you could draw the short end of the stick. Even assets you had prior to the relationship could be divided. It can all quickly become very complicated.
With a Contracting Out agreement, also known as a pre or post-nuptial, you can protect certain assets as your separate property and, in the case of a separation, this document will make dividing up the property a lot easier. Contracting out isn't just about prenuptials. It’s also used in estate planning to protect against rest home subsidies and potential creditors. It’s important to get this sorted and here at The Law Shop, we can explain everything and get your documentation sorted in no time. One less thing to worry about! Get in touch anytime if you’d like to discuss things further.