Before, during or after the relationship you may enter into a legal agreement, which decides how financial and other affairs, including maintenance and property rights will be arranged. To be enforceable this agreement must comply with precise rules, including independent legal advice for both parties.
A married couple or defacto couple having separated can reach an agreement as to the division of their assets and liabilities.
The agreement can be formalised by Consent Orders or a Binding Financial Agreement. Information you need to know about Binding Financial Agreements is set out below:
The Family Law Act provides for Binding Financial Agreements being made namely:
A Financial Binding Agreement must meet the following requirements in order to be binding, namely:
The Agreement must contain certificates signed by the solicitor for each party providing that the solicitors gave Independent Legal Advice to each respective party. Once the Agreement is signed one party must receive the original Agreement and the other party must receive a copy. The document must specify the extent if any spousal maintenance is provided or not.
The reasons for Binding Financial Agreements include the following:
You need to ensure that when receiving advice about entering into a Binding Financial Agreement, full disclosure of all assets and liabilities are made by both parties and all the above requirements are met in order to be a binding agreement.