Binding Financial Agreement
The law allows married or de facto couples to make a legally enforceable contract about their property known as a Binding Financial Agreement. These agreements can be made before, during or at the end of a relationship. A Binding Financial agreement made before a marriage is often called a pre-nuptial agreement.
A Binding Financial Agreement can also cover what, if any, spousal maintenance is to be paid in the event a relationship breaks down.
It is essential for agreements to be binding that both parties have independent legal advice. There are many technical requirements which if not adhered to, may result in the agreement being set aside many years after the agreement is entered into.
Further, the intent of a financial agreement may seem simple, but if the agreement is not carefully drafted, there can be unintended consequences. Accordingly, it is very important that both parties obtain advice from experienced family lawyers.
Dos and Donts of a Binding Financial Agreement
Do carefully think about how the agreement will work in practice if the agreement requires each party to keep proof of every amount spent on day to day expenses or assets for the entirety of the relationship, the agreement is unlikely to be adhered to;
Do be aware contract law applies to a binding financial agreement. These agreements can be set aside in specific circumstances (eg where there is fraud, duress or unconscionable behaviour);
Do ensure both parties give full disclosure of their financial position lack of disclosure may be a ground for setting the agreement aside;
Dont enter into an agreement shortly before a wedding the threat of an impending wedding may be a form of duress resulting in the agreement being set aside.
Contact our Cairns Family Lawyers should you require further information.’
0 Comments