Binding Financial Agreement
What is a Binding Financial Agreement?
A Binding Financial Agreement allows a couple to agree in advance on an acceptable division of assets. If the union between the couple breaks up or is no longer workable, the Binding Financial Agreement takes away the financial stress of separating and allows the couple to amicably separate without the need for litigation.
A Binding Financial Agreement may be made before, during or after marriage (but within 12 months of obtaining a divorce).
There are many names for Binding Financial Agreements:-
- Pre-nuptial Agreements (pre-nups)
- Post-nuptial Agreements (post-nups)
- Cohabitation Agreements
- Separation Agreements
- Divorce Agreements
Key factors to take into account when agreeing on the terms and conditions of a Binding Financial Agreement:-
- You and your partner’s occupations and future capacity to earn an income.
- Your current assets including chattels, vehicles, shares, furniture, valuables, jewellery or sentimental items which you may wish to include in the Agreement.
- The current value of the above assets.
- The current market value of your property and any other property you intend to own personally.
- Details of your liabilities including any loan, mortgage or debt owing.
- Whether there is any other family law financial agreement to which you or your partner are a party.
- The date when the cohabitation commenced between your partner and you.
- The date when the relationship commenced between your partner and you.
- Whether you or your partner have been married previously.
- Children – how many and what age.
The courts can make orders to enforce a Binding Financial Agreement.
There are a number of formal requirements which have to be met to make the Agreements enforceable.
When the court makes orders adjusting property interests, it has to be satisfied that what is being proposed is just and equitable.
Please do not hesitate to contact our experienced Family Lawyers on +61 3 9500 1722, request a cost estimate or email an enquiry.