When you’re in a relationship, especially one that involves shared property or finances, talking about “what happens if things don’t work out” can feel awkward, even unromantic. But as today’s guest on the UNO Home Loans show points out, protecting your financial wellbeing isn’t a sign of mistrust; it’s simply smart planning.
In this episode, UNO’s Vincent sits down with Ian Macleod from RP Emery & Associates, a legal publishing service specialising in Binding Financial Agreements (BFAs), often known as prenups in Australia. Together, they unpack how these private agreements can help couples avoid unnecessary costs and emotional strain when dealing with property transfers or separations.
“I’ve been in the mortgage industry for 20 years,” says Vincent, “and this is the first time I’ve come across something like this that can have such a positive impact.”
Ian explains that a Binding Financial Agreement in Australia allows couples to make a private arrangement about how assets, property, and liabilities will be divided, either before, during, or after a relationship.
“When people separate, they can either go through the court system or make a private agreement,” Ian shares. “A private agreement is faster, cheaper, and lets both parties decide what’s fair without a magistrate getting involved.”
These agreements are especially useful when real estate is part of the picture. “If one partner wants to keep the property, they often need to refinance or transfer ownership,” Ian explains. “Normally that would trigger stamp duty, which can cost tens of thousands. But with a Binding Financial Agreement or court order, that can often be avoided.”
There’s a common misconception that prenups in Australia are only for the ultra-rich. Ian dispels that quickly:
“It’s for anyone who feels insecure or wants clarity,” he says. “You don’t need to have millions. If you’ve got a property, some savings, or even an inheritance you’d like to protect, a financial agreement makes sense.”
Vincent adds that, from a practical perspective, the cost of getting an agreement, typically around $3,500 including legal advice, is minor compared to the potential financial hit of a messy separation.
“In a way, it’s like an insurance policy,” Ian says. “The chance of your house burning down is less than 1%, yet you still insure it. The chance of a relationship not working out is much higher. So why wouldn’t you protect yourself financially too?”
One important detail Ian stresses is that both parties must receive independent legal advice.
“You can’t have one lawyer acting for both,” he explains. “Each party’s lawyer needs to certify that their client understands the agreement and isn’t signing under pressure.”
That’s also why timing matters. Ian warns against leaving a prenup until right before a wedding. “We’ve seen agreements set aside by courts because they were signed just days before the ceremony. Give yourself a couple of months, no one should feel rushed.”
The conversation touches on the emotional side, too. Asking for a financial agreement can feel uncomfortable, but Ian says open communication is key.
“If one partner feels insecure and the other understands why, that’s a sign of a healthy relationship,” he says. “It’s about respect and transparency, not a lack of trust.”
Vincent agrees: “For couples buying property together, this kind of clarity can actually strengthen the relationship. You both know where you stand, and that makes financial decisions easier.”
Whether you’re entering a new relationship, buying your first home together, or going through a separation, a Binding Financial Agreement can save time, stress, and money.
“Most people don’t even know this option exists,” Ian says. “They go straight to a lawyer, spend thousands, and end up in court, when they could have handled it privately and amicably.”
With the right advice, planning ahead doesn’t mean expecting the worst, it means setting the foundation for a secure future, whatever happens next.
RP Emery & Associates provide professionally drafted Binding Financial Agreement kits and connect clients with independent lawyers for fixed-fee legal advice. Learn more or get started at rpemery.com.au
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