Financial Agreements
The term “prenuptial agreement” may have first been made famous in Hollywood and only
associated with the rich and famous, but today these type of Agreements are becoming
increasingly popular for everyday couples, and for good reason.
A binding financial agreement, sometimes referred to as a prenuptial agreement, is a contract between two people that sets out the way their assets will be divided in the event that their relationship breaks down, ousting the Court’s jurisdiction in relation to financial proceedings between the parties. Part VIIA and Part VIIIAB of the Family Law Act 1975 (Cth) allows couples, married and de facto alike, to enter into financial agreements, at any point during a relationship, including post separation.
To be binding, a Financial Agreement must meet the following minimum legal requirements,
Step 1. The agreement is signed by all parties
Step 2. Before signing the agreement, each spouse party is provided with independent legal advice from a legal practitioner about the effect of the agreement on the rights of that party and about the advantages and disadvantages, at the time that the advice was provided, to that party of making the agreement.
Some circumstances when a Financial Agreement might be considered include:
- Where either party has children from a previous relationship that they would like to be protected financially
- Where one party has more money, property or assets than another at the beginning of the relationship
- During the course of the relationship, where one party may come into a windfall such as an inheritance or winning the lotto (don’t we wish!)
- Following separation, where the parties want to determine the terms of any property division without the expense and stress of the Court intervening
The Court has power to set aside Financial Agreements in some circumstances, including where the Agreement is entered under duress.
The law about Financial Agreements is complex. We do not charge any new family law client for the first 30 minutes of our time, so if you are considering taking the next step in a serious relationship, there is a major change during your relationship or you are going through a separation, contact us for guidance.