Now that you understand where you stand, what can you do about it? There is no one-size-fits-all answer. The right approach depends on your circumstances.
Option 1: Do nothing
This is a valid choice for some couples. If you are happy with equal sharing of everything, and neither of you has significant separate assets to protect, the default rules may work fine for you.
This might suit you if:
- - Neither of you has significant pre-relationship assets
- - Neither expects to receive a significant inheritance
- - Neither has children from previous relationships
- - You are both comfortable with the equal sharing default
Option 2: Contracting-out agreement
A contracting-out agreement (often called a prenup) lets you and your partner decide for yourselves how your property will be treated, rather than accepting the default rules.
This might suit you if:
- - You are entering a second relationship with children from your first
- - You have received or expect to receive an inheritance
- - You have significant assets you brought into the relationship
- - You own a business and want to protect it
- - You want clarity about your financial arrangements
We will cover agreements in detail in the next step.
Option 3: Trust planning
A trust can provide some asset protection and has other benefits (estate planning, protection from creditors). However, as we discussed, trusts alone may not fully protect assets from relationship property claims.
Trusts work best alongside agreements
A contracting-out agreement that acknowledges the trust, combined with a properly structured and operated trust, provides stronger protection than either alone.
Option 4: Combined approach
For many people, the best protection comes from a coordinated approach:
- A contracting-out agreement that addresses relationship property
- A trust that provides broader asset protection and estate planning benefits
- A will that coordinates with both
- Regular reviews as circumstances change
Making the decision
The right choice depends on your circumstances, your values, and your relationship. There is no judgment in any of these options. What matters is that you make an informed choice.
At this stage, we explain your options and help you understand the implications of each approach.