Plan together with a pronup

Mar 19, 2020 | Private Wealth

A pronup is a written financial plan to help you and your partner to secure your financial future.  Written in consultation with a Financial Adviser, a pronup can help you avoid money troubles that would inevitably impact negatively on your relationship. 

A pronup shouldn’t be confused with a prenup, which is a binding financial agreement that outlines what you and your partner will be entitled to receive if your relationship ends. Put simply, a pronup has a more positive outlook for your relationship than a prenup! 

Think of a pronup as like getting financial counselling for your relationship. It’s like any other form of relationship counselling, just with a financial context. A pronup will help you to identify what you’re currently doing well financially, what you’re not, and what strategies you can put in place to achieve your financial goals together. 

Once you have a pronup in place, you should regularly monitor it with your financial adviser as your circumstances change over time.

When should you get a pronup?

It’s important to understand that it’s never too late or too early to get a pronup when you’re in a serious relationship. However, the earlier you put one in place, the better. A pronup will help to:

  • clarify you and your partner’s short, medium and long-term financial goals,

  • identify you and your partner’s current spending and savings patterns and,

  • address any potential financial issues that you may have (or allow you to avoid them altogether).

The bottom line

There’s an old saying that ‘people don’t plan to fail; they fail to plan.’ It’s true whether you’re talking about relationships, finances, or any other aspect of life. 

Nobody goes into a serious relationship wanting it to fail, but it’s an unfortunate reality that many relationships do. It’s also a fact that money troubles are a leading cause of relationship break-ups, so it just make sense to have a pronup (financial plan) in place.

Please contact us on |PHONE| if you seek further discussion on this topic .

Reference: https://www.moneyandlife.com.au/individuals/family-and-life-events/pronup/

Source: Clientcomm library

Important note:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.Any general tax information provided in this publication is intended as a guide. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

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<a href="https://ugc.net.au/author/louis/" target="_self">Louis van Coppenhagen</a>

Louis van Coppenhagen

Louis is a Financial Adviser with 15 years experience, three university degrees and specialist qualification in Aged Care.

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