Prenuptial Agreement Cases in Australia: What You Need to Know
A prenuptial agreement, also known as a prenup, is a legal document that outlines the division of assets and property in the event of a divorce or separation. While prenups are becoming increasingly popular in Australia, they are still subject to interpretation by the courts. Here are some key cases that could affect your prenup:
Thorne v Kennedy (2017)
This case involved a wealthy property developer who met his future wife online while she was living overseas. The couple signed a prenup while the wife was still overseas, which heavily favored the husband. However, the wife argued that she had no choice but to sign the agreement as she had already made plans to move to Australia and was financially dependent on her future husband. The court ruled in her favor, finding that she had been under duress and the agreement was not legally binding.
This case highlights the importance of ensuring that both parties in a prenup are fully aware of the implications and have had the opportunity to seek independent legal advice.
Poulett-Harris v Poulett-Harris (2019)
In this case, a wealthy businessman and his wife signed a prenup that stated the wife would receive a lump sum payment of $50,000 in the event of a divorce. However, the wife argued that the prenup was invalid as she had been coerced into signing it. The court agreed, finding that the husband had exerted undue influence over his wife and the prenup was not enforceable.
This case serves as a reminder that both parties must enter into a prenup freely and voluntarily, without coercion from the other party.
Fisher v Fisher (2013)
This case involved a couple who had been married for over 20 years and had signed a prenup agreeing to split their assets 50/50 in the event of a divorce. However, the wife argued that the agreement was unfair as the husband had significantly increased his wealth during the marriage. The court agreed, ruling that the prenup was not binding as it did not adequately provide for the wife`s needs.
This case demonstrates the importance of ensuring that prenups are updated regularly as circumstances change, to ensure they remain fair and equitable for both parties.
In conclusion, while prenuptial agreements can provide peace of mind for couples entering into marriage, they are subject to interpretation by the courts. It is important to ensure that both parties have a clear understanding of the agreement and that it is fair and equitable for both parties. Seeking independent legal advice and regularly reviewing and updating the prenup can help to avoid potential disputes down the track.
