When couples enter into financial agreements, whether before marriage, during a relationship, or after separation, clarity and honesty are key. These agreements can shape future financial stability, prevent disputes, and reduce the emotional toll of litigation.
At MBA Lawyers, it is often seen that the success of these agreements comes down to one simple but critical factor: transparency.
The Role of Financial Agreements
Financial agreements, sometimes known as “prenups” in other jurisdictions, allow couples to set out how assets will be divided if they separate. They can be drafted:
- Before or during cohabitation or marriage
- After separation or divorce
It was explained by Aleena Mills that these agreements are essentially about agreeing in advance how assets will be divided if separation occurs. Couples may be in a positive stage of their relationship when the agreement is made, but planning ahead helps avoid the stress and expense of litigation later.
While financial agreements provide a roadmap for asset division, they are not foolproof. Courts can set them aside in certain situations, and that is where transparency becomes non-negotiable.
Why Full Disclosure Matters
One of the most common reasons courts intervene in financial agreements is a lack of disclosure. If one party hides assets or misrepresents their value, the agreement may be deemed unfair and invalid.
It was emphasised by Mills that transparency and honesty are essential in these agreements, particularly regarding the value and extent of assets. Without openness, the agreement loses its foundation and may later be challenged by the disadvantaged party.
Transparency also builds trust. Even in emotionally charged separations, knowing that both parties have laid all cards on the table can help smooth negotiations and create agreements that feel fair.
Benefits of Transparent Agreements
When handled openly, financial agreements can:
- Reduce litigation costs – A carefully prepared agreement costing around $5,000–$6,000 can prevent legal battles that may run well into six figures.
- Provide certainty – Couples know where they stand financially, reducing stress during a breakup.
- Protect vulnerable parties – A fair agreement ensures non-financial contributions, like parenting and homemaking, are acknowledged.
- Avoid future disputes – Transparency now prevents claims of concealment later.
Risks of Withholding Information
On the other hand, concealing assets, undervaluing property, or pressuring a partner to sign can render agreements void. Courts have ruled against agreements where one party acted under duress or lacked critical financial information.
This is especially important for younger couples who may later face changes in circumstances, such as children or career shifts. Without transparent and regularly reviewed agreements, one partner could be left unfairly disadvantaged.
How MBA Lawyers Can Help
At MBA Lawyers, the family law team works with clients to ensure financial agreements are drafted with fairness and foresight. Full disclosure, equitable terms, and future-proofing through regular reviews are always prioritised.
Financial agreements should not be rushed or treated as mere formalities, they require careful planning and open communication. With the right guidance, couples can protect their interests while maintaining respect and trust.