International Assets and Prenups
When assets cross borders, financial agreements require extra care — but they are still worthwhile.
When international assets come up
Many Australian couples have some connection to overseas assets. One partner may own property in another country. They may hold bank accounts or investments overseas. They may have pension entitlements in a foreign country from prior employment. They may hold shares in an overseas company or have an interest in a family business abroad.
These international connections add complexity to a financial agreement — but they also make the case for one stronger, not weaker.
Jurisdiction is the key issue
Australian courts — and Australian financial agreements — operate under Australian law. Their ability to deal with assets located overseas depends on the laws of the country where those assets are located.
A BFA prepared under the Family Law Act can address overseas assets and set out how they should be treated. But enforcing those provisions — actually compelling a foreign court or institution to give effect to the agreement — may require separate legal proceedings in the relevant jurisdiction.
This does not make an Australian BFA pointless for international assets. It does mean you need to understand the limitations and plan accordingly.
Disclosure of overseas assets
Both partners must disclose their overseas assets as part of the financial disclosure process, just as they would disclose Australian assets. A failure to disclose material overseas assets can undermine the validity of the agreement.
This includes:
• Property in other countries • Foreign bank or investment accounts • Overseas pension or retirement funds • Shares or equity in foreign companies • Interests in overseas family businesses or trusts
Valuing overseas assets in Australian dollars can sometimes be approximate, but the assets should be disclosed and described accurately.
Couples with mixed residency or citizenship
If one or both partners are not Australian citizens or permanent residents, or if either partner may relocate overseas, the jurisdictional picture becomes more complex.
A financial agreement made in Australia may not be recognised in another country. If there is a real possibility that the relationship's property matters could be litigated overseas — because one partner returns to their home country, for example — it may be worth considering whether agreements should be prepared in multiple jurisdictions.
This is a situation where specialist legal advice is strongly recommended, beyond what a standard BFA process can address.
When to seek specialist advice
Prenuply is designed for couples with straightforward to moderately complex financial situations. Where international assets are a significant part of the picture — particularly where there is real uncertainty about which jurisdiction would govern a property dispute — specialist advice from a lawyer with expertise in both Australian family law and international private law is important.
Premuply's questionnaire is designed to identify situations that may require a more tailored approach. If your international asset situation is complex, the lawyers involved in your matter will advise you on what additional steps may be needed.