Author: Carol Pages, Pages Family Law.
Most people have heard of a pre-nup, and many know someone who has had to divide property after separation or divorce. But fewer people know about mid-nups – and understanding them may offer you security, clarity and peace of mind in your relationship.
In Australia, couples can enter into a Binding Financial Agreement (BFA) before, during or after a de facto relationship or marriage. While BFAs are commonly used before marriage or after separation, they can also be prepared while the relationship is ongoing. This is what many refer to as a mid-nup.
A BFA is the only legally effective way to document your agreement about how your property will be divided if you separate – even if you have not separated and hope you never do.
Why Mid-Nups Matter
Mid-nups are becoming increasingly common in Australia. Many couples are turning to them because they’ve witnessed friends or family go through lengthy and emotionally draining property disputes, or they want to protect future financial interests.
A mid-nup may be considered when:
- ● one partner has received or is likely to receive a significant inheritance
- ● partners are entering a second or later-in-life relationship
- ● there is a large difference in assets or income
- ● either partner wants clarity and protection around property division after separation
- ● there are children from previous relationships whose inheritance needs to be safeguarded
Australia is also experiencing a documented rise in grey divorce – separations later in life where retirement savings and financial certainty are critical. Many clients tell us that after separation they feel anxious about what their financial future will look like. A mid-nup can help offer relief from that uncertainty.
Is a Mid-Nup Right for You?
A BFA provides clarity around what will happen to your assets, property and finances if your relationship ends. For many people, having that certainty strengthens – rather than undermines – their relationship.
You may benefit from a mid-nup if you:
- ● entered the relationship with unequal assets
- ● want to maintain financial independence
- ● have children (including adult children) and want to preserve inheritance protections
- ● prefer to resolve financial matters now rather than during a stressful separation
Can You Draft a Mid-Nup Yourself?
Not effectively – and not legally.
For a Binding Financial Agreement to be enforceable, both parties must receive independent legal advice, in writing, about:
- ● the advantages and disadvantages of the agreement
- ● the effect it will have on your legal rights
A signed homemade agreement does not satisfy the requirements of the Family Law Act. In practice, informal agreements often fall apart once one party receives legal advice following separation.
A mid-nup must be drafted properly to protect you. This is a situation where DIY is almost always risky.
Considering a Mid-Nup? We Can Help.
f you believe a mid-nup could provide you with clarity, protection and peace of mind for the future, we’d be happy to guide you.
Book a free 15-minute discovery call to discuss whether a Binding Financial Agreement is right for you and how we can assist.
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The content of this article is provided for information purposes only and does not constitute legal advice. We recommend that you seek legal advice relevant to your own circumstances and we would be happy to assist you.
Carol Pages is the Principal of Pages Family Law and an Accredited Specialist in Family Law and a Nationally Accredited Mediator. If you would like advice about your own separation, please contact Pages Family Law at info@pagesfamilylaw.com.au or on 03 9121 8077 or book a 15 minute free discovery call via our website.
