Binding Financial Agreements
It is often the case that upon separation, parties reach an agreement as to the division of their assets, either verbally or in a form that is not legally binding. It is important that upon separation occurring that any agreement that has been reached between the parties is properly documented. If your agreement is not documented properly, your assets may not be adequately protected and remain at risk.
One of the ways to finalise your agreement, is by way of a Binding Financial Agreement.
Binding Financial Agreements can be entered into prior to a marriage, during a marriage or after Divorce. Agreements prior to a marriage are often referred to as "Pre-Nuptial Agreements". These agreements allow you to decide together, in advance, and whilst you both have each other's best interests in mind, what you think is fair and what you will do with your property in the event you separate.
De Facto Relationships
Similarly in de facto matters, a Binding Financial Agreement can be entered into prior to the parties commencing living together, during a De facto Relationship, and after a De facto Relationship has ended.
The Family Law Act outlines the mandatory requirements that need to be satisfied for any agreement to be binding upon both parties. It is for this reason that Binding Financial Agreements are complex documents and require precise drafting to ensure that they are binding.
The drafting and completion of these agreements takes time and as such, you should ensure that you do not leave things until the last minute. You should also be cautious to ensure that you and your partner do not cut corners and instead, co-operate with your legal advisors so that all requirements are met.
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Family Law News
See attached news articles by OMB for more information and recent developments in this area of law: