It has been widely reported that Taylor Swift and Travis Kelce signed a prenuptial agreement prior to their recent wedding.
Why would they do this?
The answer is because each of them have assets and financial resources in their own names that they have acquired prior to the relationship, and each of them want to protect their ownership of these entitlements if the marriage ends.
It is also true that both Taylor and Travis are likely to continue to accumulate additional assets and financial resources from their occupations, their investments or their families that they also may want to protect.
Should you be doing this?
Under the Family Law Act 1975 we are able to prepare financial agreements that set out how the assets of a relationship or marriage are to be divided if that relationship does not work out. This can be done prior to two people commencing a de facto relationship or it can be done prior to a marriage.
These agreements can also be prepared during a relationship or marriage to set out the agreement that two people have reached regarding the division of their assets if they separate in the future.
The benefit of these agreements is that instead of having to try to negotiate a division of your property at the conclusion of a relationship, the two of you can work out those arrangements when the relationship is going well and when you are able to sensibly and practically agree on these issues.
A financial agreement can also protect assets and financial resources that you are likely to come to have in the future including inheritances, or assets that are transferred to you under a family arrangement or accumulated as a result of your occupation, investments or business interests.
Should the relationship then run its course and come to a conclusion you will not be left having to do this and potentially involve lawyers at significant cost and effort to sort through and negotiate your asset division or in a worst case scenario, commence court litigation to work this out.
How do I enter into a Prenuptial or Financial Agreement
If you are interested in having a prenuptial or financial agreement prepared before or during your relationship, our experienced family law team can help. We can work with you to understand your circumstances, discuss the issues that should be addressed in the agreement, and prepare a document tailored to your needs.
We can also assist you in having these conversations with your partner and, where appropriate, their lawyer, helping both parties understand the benefits of putting clear arrangements in place from the outset.
A well-drafted financial agreement can provide certainty, protect assets, and help avoid costly disputes in the future. If you would like to explore whether a financial agreement is right for you, the Family Law team at Mellor Olsson can provide practical advice and guide you through the process with confidence.
Please see here for additional information about BFAs.
Image credit: BBC