Financial Agreements - otherwise known as “Prenuptial Agreements” - are a binding contract that a couple enter into before, during or after marriage to set the terms if the marriage irretrievably breaks down. The concept was written into the Family Law Act in 2000. This agreement is binding on both parties and must be compliant with the strict regulations that are set out in the Family Law Act.
Types of financial agreements:
Entering into a de facto relationship or marriage
Parties who are already in a de facto relationship or marriage may make a financial agreement at any time during the relationship
After a divorce order is made
Some will choose to enter into a finance agreement to protect the assets which they contributed to the relationship and to bring clarity to dividing up the assets. Having this agreement in place can save significant costs before the matter is determined to require complex settlement negotiations or is required to proceed to Court.
When and how can a financial agreement be used?
As a binding agreement on how a couple will divide their assets prior to entering into a marriage or relationship. It’s more often than not those who are entering a de facto relationship or second marriage who are seeking protection of assets for children from a previous relationship.
Rather than seeking a Court Order to finalise spousal maintenance obligations, separated couples may decide to enter a financial agreement at this stage as an effective, less stressful way to finalise their obligations to each other
Where inheritance is concerned. If a party receives inheritance during the relationship they may use a financial agreement to exclude said inheritance from a property settlement.
It is worth seeking independent legal advice prior to entering into such an arrangement to understand the advantages and disadvantages - unique to your situation. Our Family Law Team will be able to guide you on Financial Agreements - why and how they can be used, and what benefit they can specifically be to you.
If you need advice about financial agreements, contact Vizzone Ruggero Twigg Lawyers on 02 9667 1271 and our Accredited Family Law Specialists will tell you everything you need to know.