Should you be offering your clients a pronup?
It’s a sobering fact that one in three Australian marriages will end in divorce, with the number one reason being money. To safeguard their future in the event that their relationship ends prematurely, more Australian couples are turning to prenuptial agreements.
But here’s the thing about prenups: they focus on failure rather than success. This potentially brings a host of negative emotions into the marriage before it even begins.
With this knowledge in mind, The Financial Planning Association of Australia (FPA) is currently rolling out it’s ‘Better to Prepare’ 2019 ad campaign. This campaign focuses on the concept of a ‘pronup’ for couples. Find out what a pronup is all about and if you should be offering one to your clients.
What is a pronup?
According to the FPA, a pronup is a financial plan prepared in conjunction with a financial adviser for couples to build a better future together.
How money is handled in a relationship is one of the most important factors in keeping people in a relationship or driving them apart. The focus of a pronup is open communication about money, getting united on shared goals and setting out how they will be achieved from a financial perspective. A pronup aims to keep your clients united in their goals and approach to money.
How is a pronup different from a prenup?
A prenup is a legally binding agreement that sets out what will happen to assets brought to a relationship in the event that the relationship ends. A pronup, while not legally binding, takes a positive spin on this. It’s focus is on keeping couples together, by planning for a future together.
Who can benefit from a pronup?
Anyone in a serious relationship can benefit from a pronup. A pronup opens the lines of communication about money, setting goals, and laying down ground rules about spending, saving and more. It’s recommended people put a pronup in place prior to getting married, buying a home or having kids.
Why should I offer a pronup to clients?
Offering pronups to clients is a great way to broaden your service offering. It may enable you to extend your services to existing clients or attract new clients to your business. For example, younger couples at the beginning of their wealth journey may find a financial plan quite intimidating. However, a pronup packages a financial plan up in a positive way for these couples to openly discuss the topic of money.
For more information on incorporating a pronup into your business, check out Financial Planning Association of Australia.