Contracting Out Agreement Cost NZ: All You Need to Know
When couples get married, they often make a vow to stick together through thick and thin. Unfortunately, not all marriages last forever. In New Zealand, married couples can create a contracting out agreement to protect themselves financially in case of separation or divorce. A contracting out agreement is also known as a prenuptial agreement or a prenup.
What is a Contracting Out Agreement?
A contracting out agreement is a legal document that allows couples to agree on how their assets and debts will be divided in case of separation or divorce. Typically, these agreements are created before a couple gets married. However, they can also be created during a marriage or civil union.
A contracting out agreement can cover a range of financial issues, such as:
– How to divide property, assets, and debts
– Spousal maintenance payments
– Protection of inheritance or family assets
– Protection of business interests
– Protection of personal assets
Why Create a Contracting Out Agreement?
Creating a contracting out agreement may not be the most romantic thing to do before getting married, but it can provide a sense of financial security for both parties. Here are some reasons why couples may choose to create a contracting out agreement:
– Protecting assets: A contracting out agreement can protect the assets that each party brings into the marriage. This can include savings, property, and investments.
– Protecting business interests: If one or both parties own a business, a contracting out agreement can protect those interests in case of separation or divorce.
– Avoiding disputes: In case of separation or divorce, disputes over property and assets can be emotionally and financially draining. A contracting out agreement can help avoid these disputes by clearly outlining the division of assets.
– Customization: A contracting out agreement can be customized to suit the needs of each couple. Each couple`s financial situation is unique, and a contracting out agreement can be tailored to reflect that.
What is the Cost of a Contracting Out Agreement in New Zealand?
The cost of a contracting out agreement in New Zealand can vary depending on a few factors. These factors include:
– The complexity of the agreement: The more complex the agreement, the more time and resources it will take to create. This can result in a higher cost.
– Legal fees: It is recommended to seek legal advice when creating a contracting out agreement. The cost of legal fees can vary depending on the lawyer`s hourly rate.
– Location: The cost of a contracting out agreement may vary depending on where in New Zealand the couple resides.
On average, the cost of a contracting out agreement in New Zealand can range from $1,500 to $5,000. However, the cost can be higher or lower depending on the specific circumstances.
In Conclusion
A contracting out agreement can provide peace of mind for couples entering into a marriage or civil union. It can protect assets, avoid disputes, and be customized to suit each couple`s unique financial situation. While it may come with a cost, it can be a worthwhile investment for long-term financial security.