Contracting Out Agreements
A contracting Out Agreement is an agreement to opt out of the provisions of the Property Relationships Act(Sometimes called a Pre-nuptial agreement). When people enter into a de-facto relationship or marriage, the provisions of the Property Relationships Act come into operation. The act states that after a certain period of time, the family home and possibly other property is to be divided equally between the partners of spouses in the event of separation or death.
In some circumstances, where one partner or spouse brings property of much greater value into the relationship, this would seem to result in an unfair result. Hence the need for a "Contracting out" agreement. These agreements are usually entered into with the intention that the partners or spouses protect their respective contributions in the event of the relationship ending, at least during the early years of the relationship. It is advisable to consider such an agreement at the time that you are purchasing a property or, preferably, before the commencement of the relationship or marriage.