In this short introductory video, we`ll look at the circumstances in which you should consider entering into a binding financial agreement. A binding financial agreement, sometimes called a prenuptial agreement, defines how some or all of a couple`s assets will be divided in the event of a breakdown in their relationship. He may also take care of the spouse`s service. You can be a married couple, de facto or of the same sex – it makes no difference. Everyone is treated equally under the Family Law Act and anyone residing in Australia can make a financial arrangement. In the following video series, Justine Woods, Family Law Partner at CGW, discusses what you need to know about binding financial arrangements for married and de facto couples, including the pros and cons, risks and potential loopholes, and what the process is likely to entail. It is important that you work with an experienced lawyer to prepare your binding financial agreement. Our team of family law experts in Brisbane is experienced in dealing with complex scenarios and the associated tax and property implications. One of the key issues in executing your binding financial agreement is to make sure that it is actually binding. The information contained in this blog does not constitute legal advice and cannot be relied upon by you.
If you need advice specific to your situation, please contact Sayer Jones. The content of this blog will be relevant from July 2021. We recommend that you seek specific advice that is relevant to you and your family`s situation. To make it easier for you to choose the right agreement, we have provided the “Choose your agreement” pages that will take you directly to the right document kit. We guide you with simple explanations and make sure that you get exactly the document that suits your situation. If you are unable to reach an agreement, you may need to apply to the court for a ruling from the Tax Court, and a judge will decide how your assets will be divided. Marriage must be formulated in such a way as to meet all the many legal requirements, so that it is maintained in the future if it is contested. If your partner has asked you to sign a binding financial agreement, you should seek independent legal advice before signing, preferably from a family law lawyer. Family law provides for binding financial agreements between the parties to a marriage and between the parties to a de facto relationship. These agreements can be made before, during or after the marriage or common-law relationship. Contracts concluded before marriage are colloquially referred to as “marriage contracts”. Drafting a binding financial agreement is complex.
The couple needs to be clear about what the deal is supposed to say. Financial arrangements made prior to a marriage or common-law relationship can determine how to treat the parties` property and financial resources in the event of a relationship breakdown. They may also contain provisions relating to the maintenance of one of the parties. Financial arrangements are made in accordance with certain sections of the Family Law Act. For example, if you plan to enter into a prenuptial agreement, you must enter into your agreement in accordance with Section 90B. If you are currently married or separated from a marriage but are not yet divorced, you will need an agreement under Article 90C and divorced couples fall under Article 90D. It can also make the parties feel safe knowing that the assets they accumulated before the relationship or marriage are safe. Prior agreement tends to resolve problems that arise after separation without costly legal fees or legal delays.
A financial agreement may mean that you and your former partner are aware of how property and financial resources will be divided in the event of separation. It gives each party a certain degree of certainty that its specific assets are protected in the event of separation. Binding financial arrangements must be carefully drafted to ensure that they take into account all existing structures such as family trusts, corporations and self-directed super funds, as well as tax implications and other obligations. There is no fixed or specific format that the contract must follow. In principle, the contract contains implicit or express provisions which form the basis of the agreement. What should you do if you want a binding financial agreement? You should talk to your lawyer about the deal well in advance of the marriage or the start of the common-law relationship. If the agreement is prepared in haste, important considerations may be overlooked, and the closer the date gets, the greater the prospect of repealing the agreement on the basis of coercion. The more thorough the preparation of the agreement, the more likely it will be binding and the more likely you are to be satisfied with the terms of the agreement if the relationship breaks down. Whether you choose a written, oral, or a combination of both agreements, there are four essential elements of a contract that must be included to make it legally binding: It`s important to consider a binding financial agreement if: Understanding what assets you have and how you`re going to divide them, can seem like a daunting task.
But these four categories are the most important things to consider in order to include them in your financial agreement. An important aspect of de facto financial agreements is that they have no effect when the parties marry. If you make a financial agreement with your current or planned common-law partner and then decide to get married, it is important that you seek legal advice well in advance of getting married. There are certain formal requirements that must be met. .