Anyone getting into a spousal relationship or de facto relationship in Australia may decide to write up a legal agreement detailing how property and savings will be partioned in the event of a divorce or relationship breakdown. This is referred to as a binding financial agreement in Australia while some think of it as a separation agreement or possibly a pre- or post-nuptial agreement. No matter what this agreement is called, as long as it really is legitimate and enforceable, the court can implement it to split assets based on the wishes of the parties involved. What are the advantages of having an agreement of this type?
When you begin a binding financial agreement, you remain in control of your assets and choose which party gets which items. The emotional and financial costs of the court proceedings are cut down tremendously and you can set out to proceed with your new life. Communication between past partners enhances with the use of a financial agreement and your relationship as parents, if this situation applies, often works more effectively. The best time to come to a financial agreement is when you’re still acting as a couple so you can make reasonable decisions. Emotions are more unlikely to come into play if this is the case.
How can you begin establishing a binding financial agreement in Australia? Specific situations must be met to ensure the contract is reasonable and enforceable. Both persons must seek independent legal advice from different legal practitioners before the agreement is signed. The legal practitioners are required to explain how getting into the agreement will affect the right of each party and outline the benefits and downsides of an agreement of this type. A signed statement should be given by the legal practitioner stating that the advice was presented and this statement must be shared with the legal advisor for the other party. In addition, any spousal maintenance to be supplied should be outlined in the document. The financial agreement in Australia should be written and signed by both persons.
Specific situations can certainly make a binding financial agreement in Australia unacceptable and unenforceable. Fraud is one situation. If either party has failed to disclose a ‘material matter’, the contract can be set aside by the court. The same is true if the agreement has been created for a fraudulent purpose. If there is a material change in conditions, the court may set the contract aside and the same is valid if some terms are voidable, void or unenforceable. Other situations may occur that make the contract unacceptable.
Do not ever go into a binding financial agreement without pursuing these procedures. When you do so, the court will probably set the agreement aside as if it never ever existed. Talk with legal council to have an agreement drafted. When you do this, you could save yourself a great deal of time and frustration in the event the relationship does not last.
Discover how a Binding Financial Agreement can benefit you. Visit Inveiss for more information about binding financial agreement.. Unique version for reprint here: Binding Financial Agreement In Australia: Standard Function For Couple.