Financial Agreements
A Binding Financial Agreement deals with what should happen to your property in circumstances where you and your partner separate.
A Binding Financial Agreement deals with what should happen to your property in circumstances where you and your partner separate.
In Australia, a Binding Financial Agreement (sometimes called a “prenup”) is a pre-marriage or pre-cohabitation agreement. It can also be made at different relationship stages, even after separation, by married, de facto, or divorced couples.
Some reasons why a couple might decide to enter into a Binding Financial Agreement include:
- 1
There are assets one or both of the parties accumulated prior to the relationship that they want to protect and maintain as their separate property, such as a house.
- 2
There is debt accumulated by one or both parties and the other party does not want to be liable for that debt should the relationship break down.
- 3
There is debt accumulated by one or both parties and the other party does not want to be liable for that debt should the relationship break down.
- 4
Negotiating and agreeing upon how your financial matters are to be dealt with can avoid disagreement and protracted, expensive negotiations after a separation when emotions can be high.
- 5
Protecting a party’s interest in a business or partnership.
At Umbrella Family Law, we stress the need to safeguard your financial stability in relationships. A breakup can have significant consequences for your business or partnership. Be proactive, seek expert advice, and protect what matters most.
We’ve been trusted to guide you through complex and emotionally charged situations.
QWhy is it important to have a lawyer draft a Financial Agreement?
There are strict legislative requirements for Binding Financial Agreements, with lack of compliance putting the Agreement at risk of being set aside. It is therefore essential that a Binding Financial Agreement is drafted by a lawyer.
QI'm worried about having the conversation with my partner.
Whilst these conversations with your partner might be awkward and not very romantic, they could save you both a lot of stress, time and money in the future should your relationship come to an end. You and your partner each need to seek independent legal advice, however we can all work together with your financial planner to ensure that the Agreement works in with your overall financial plan, and acts as a safety net in your asset management plan.
We can help you plan the conversation.
QWhat is the benefit of getting a binding financial agreement?
Such an Agreement excludes the Court from dealing with your financial matters in the event the relationship breaks down.
QWhy should I get a binding financial agreement?
Entering into a Binding Financial Agreements during a relationship can be a powerful financial planning and asset protection tool, as it can stipulate how the parties’ financial matters are to be dealt with in the event the relationship breaks down and protect the future financial stability of both parties.
A common misconception is that a Binding Financial Agreement is only necessary where there are significant and valuable assets however this is not the case.
Difficult conversations can be worth it.
Whilst these conversations with your partner might be awkward and not very romantic, they could save you both a lot of stress, time and money in the future should your relationship come to an end. You and your partner each need to seek independent legal advice, however we can all work together with your financial planner to ensure that the Agreement works in with your overall financial plan, and acts as a safety net in your asset management plan.
You’re not alone.
Navigating family law can feel overwhelming. Over the years, we’ve discovered that one of the biggest things missing from the process is the reassurance others have been where you are.
