Introducing the Financial Condom
by Peter Szabo
Updated 3 December 2025
The average life span for Baby Boomers is only 3 years away (2029). Wills and Estate lawyers have a lot to do to update Wills, Powers of Attorney and so on. Family lawyers will have a field day arguing over inheritances that have fallen into the property pool. Wills and Estate lawyers need to acquaint themselves with the advantages that flow from having a Prenup, given that more than 50% of second marriages fail.
Documenting advances from the Bank of Mum and Dad as loans is no guarantee that they won't be downgraded to a financial resource. Then there is the dreaded Erosion Principle, where the credit for assets brought into the marriage diminishes over time. This puzzles accountants but makes sense when indirect and homemaker contributions are legislated as being equal under the Family Law Act. The couple are welded together financially.
Sex sells, so think of your Prenup as the financial equivalent of a condom. Fits the Blended Family situation perfectly. They pose little risk as both parties have the same objective. There are unlikely to be disclosure or duress issues. As stepchildren grow older and understand financial matters better, they will come to appreciate the existence of a Prenup. A15 year old feral Stepdaughter may remain sceptical, more so if said Stepmother is not much older than she is.
The good news is that a Prenup can be entered into during the relationship. So it's not too late to rectify the situation. It then becomes a Nuptial Agreement. Time for a Blended Family discussion?