Wait! Before you sign that pre-nup!
Three key steps before signing
There are many reasons for couples to contract out of the equal sharing provisions of the Relationship Property Act (RPA).
You and your partner are off to have the lawyer draw up a quick document and sign it. But the law says, “Woah there, partner! There’s a lot more to it (131 pages to be precise!), you should definitely get legal advice to check it’s what you want first.”
The RPA states that your contracting out agreement is void unless before you sign, you receive advice from an independent lawyer on the effects and implications the agreement has on your property rights under the RPA.
There are three key steps you must take before signing a contracting out agreement for it to be valid:
- Independent lawyers: You must each have your own independent lawyer. Generally, this means the lawyer advising you on contracting out should not have previously acted for your partner.
- Disclosure: Through lawyers you and your partner exchange statements showing balances and values of all assets and liabilities. If significant property is not disclosed there is a risk that a court could overturn the agreement.
- Advice: Once your lawyer has the details of all property owned by each of you, they can assess what your rights would be if that property were divided under the RPA. They can then provide you with advice on how the agreement affects your property rights and the implications for you if property was divided under the agreement.
This article is the first in a series of four by litigation solicitor, Kerry Bowler.
Kerry Bowler, solicitor