A Contracting Out Agreement, commonly known as a pre-nuptial agreement or “pre-nup” is an agreement made under section 21 of the Property (relationships) Act. These agreements contract out of the Act – meaning that the division of your assets upon separation will occur in accordance with the Agreement, rather than in accordance with the Act. These Agreements, once signed, are binding on the parties unless they are set aside by the Court (which is a very difficult task to do).

A contracting out Agreement can be tailored to suit your circumstances. Parties can agree on what property is relationship property (jointly or co-owned assets), what are relationship debts (debts which you are both responsible for) and separate property (property that is own by one party to the exclusion of the other). You will need specify what happens with the property the Agreement covers in the event of separation, including how it should be divided between you.

For a Contracting Out Agreement to be binding, the following elements must be met: