When to Get a Prenup or Financial Agreement

By Anna Chisholm

ABC Lifestyle

Topic: Family Law

Monday, June 1, 2026, at 4:30 am

A financial agreement can be made before, during, or after marriage or a de facto relationship.

While prenups are common in celebrity circles, they can also be relevant for ordinary people.

There has been a big increase in interest in prenups at a large national family law firm.

It's essential for couples to consider the cost versus value of getting a prenup in their circumstances.

In Australia, these agreements are called binding financial agreements, which take time and money to get.

Here's how they work and when they might be useful.

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Is a binding financial agreement the same as a prenup?

A binding financial agreement is not just for before marriage; it can be done at any time.

It's essentially a contract that can be made before, during, or after a relationship.

Marriage is not required; de facto couples can also enter into a binding financial agreement.

A binding financial agreement is a contract between two people about their assets and how they will be divided if they are not together anymore.

If done correctly, it removes the Family Court's power to decide how to divide assets.

How much does a binding financial agreement cost?

Research on financial agreements found that most lawyers charge at least $10,000 to create one.

The cost of a binding financial agreement includes drafting the agreement and getting independent legal advice.

A straightforward contract without negotiations can cost between $4,000 and $5,000.

However, people often forget to factor in the cost of independent legal advice for the second signatory, which can be around $5,000.

It's in the interest of the person proposing the agreement to ensure the other party gets good legal advice.

Do financial agreements hold up in court?

It's hard to make generalizations about binding financial agreements because they are private.

There is no register of these agreements, so we don't know how many are made or how many go to court.

The only ones we see are the ones that go wrong and end up in court.

A binding financial agreement can be challenged if both parties did not get independent legal advice.

The advice must also be effective or good.

A binding financial agreement can be set aside if it was signed under duress or undue influence.

Some people are asked to sign a binding financial agreement just before their wedding, which can be risky.

It's recommended to wait until after the wedding to sign a binding financial agreement.

A binding financial agreement can also be challenged if there is a significant change in circumstances or due to fraud.

Binding financial agreements are a complex area of family law and can be set aside on technical grounds.

If a binding financial agreement is not done correctly, it can be overturned.

While binding financial agreements can be challenged, people should treat them as binding.

When is it worth making a financial agreement?

Binding financial agreements are usually made when one person has more to protect than the other.

There is more awareness around prenups, but people are not always following through with the process.

This could be because someone has saved a lot, bought property, or is likely to inherit a large sum of money.

People entering into a second serious relationship might also consider a binding financial agreement.

If a couple splits up and has a big fight in the Family Court, the cost of a binding financial agreement might seem reasonable.

Why would you get a binding financial agreement after a split?

A binding financial agreement made after a relationship ends is different and can be like a consent order.

Some people prefer a binding financial agreement after a split because it is private.

Unlike the Family Court, a binding financial agreement does not have to be fair.

If a client comes in with a binding financial agreement to sign after a split, it might be a red flag.

This article contains general information; consider getting independent professional advice for your circumstances.

Monday, June 1, 2026, at 4:30 am

Monday, June 1, 2026, at 8:44 am

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