BINDING FINANCIAL AGREEMENTS & PRENUPTIAL AGREEMENTS
A financial agreement and a prenuptial agreement are essentially the same thing, only the ‘prenuptial’ part indicates the agreement is entered into prior to a marriage or de facto relationship.
What is a financial agreement?
A financial agreement is essentially a contract (rather than a Court Order) entered into between the parties that deals with the division of their assets and liabilities in the event they separate at some point in the future.
What is the difference between a Financial Agreement, a Consent Order and a Court Order?
Financial agreements are an alternative to orders obtained through the family law system. They are complex documents that require expert legal drafting and advice.
Financial agreements are one of two ways of formalising a property settlement if the parties are able to reach agreement between themselves regarding the division of their assets and liabilities. The other is a consent order, which is a document approved by a Court. When the consent order is made, it has the same effect as a Court order made by a judge after a hearing.
Both financial agreements and consent orders have their place, and it is important to seek legal advice to determine which is more suited to your particular set of circumstances.
If parties are unable to reach agreement in relation to the division of their assets and liabilities after separation, they will need to apply to the Court for orders. The Family Law Act sets out what a Court must have regard to when deciding who should get what. After hearing the evidence of the parties, the Court will make a decision and issue an order detailing how all of the assets and liabilities are to be dealt with.
A financial agreement becomes binding (enforceable) when certain conditions are met, such as, the Financial Agreement must be signed by both parties and must contain a signed statement saying each person has received independent legal advice.
When can I enter into a financial agreement?
Financial Agreements can be entered into:
- before and during a marriage or de facto relationship
- after the breakdown of a marriage or de facto relationship
Whether you are looking to enter into a financial agreement at the start of a relationship or at the end of one, our experienced team can help you to work out what is best for you.
During our first meeting with you, we will find out what you are hoping to achieve and let you know what you need to do to achieve that.
FINANCIAL AGREEMENTS
BEFORE & DURING A RELATIONSHIP
Financial Agreements entered into before or during a marriage or de facto relationship allow you and your partner to decide what will happen to your assets in the event of separation while you’re still on good terms. This allows you to avoid lengthy and expensive litigation in the event your relationship does break down, as the outcome has already been decided and is outlined in your agreement.
Financial Agreements are often considered by people who are already in, or who are entering into, a second or subsequent serious relationship. You may have built your personal wealth or you may have children from a previous relationship. A Financial Agreement allows you to protect your wealth for your children in the event of a separation.
Financial Agreements entered into before or during a relationship are a bit like an insurance policy. We hope to never need it, but we take comfort in the fact that it’s there in case we do.
Avoid the additional stress that a property settlement process can create – meet with us to discuss how to get a Financial Agreement in place.
FINANCIAL AGREEMENTS
AFTER SEPARATION & DIVORCE
Financial Agreements are an alternative to Court Orders obtained through the family law system. They are complex documents that require expert legal drafting and advice.
Financial Agreements are one of two ways of formalising a property settlement. The other is Consent Orders. Both have their place and we can advise you of your options based on your personal circumstances – it is vital that you seek advice about your individual situation.
Financial Agreements entered into after the breakdown of a relationship or after a divorce, allow the parties to formalise an agreement that may not be approved by the Court because it is not ‘just and equitable’ or otherwise does not comply with the provisions of the Family Law Act.
Even in circumstances where an agreement is fair, a Financial Agreement may be preferred to extinguish any future claim for spousal maintenance (which Consent Orders cannot do).
Are you ready to get started?
Contact us for a free initial consultation, during which we will find out what you are hoping to achieve, and we will let you know which approach may be best for you. Likewise, if you have an existing Financial Agreement which you need to update, our experienced team can assist you in this matter.
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