Financial Agreements are private contracts between parties to a marriage or de facto relationship. Third parties can also become parties to the agreement in some circumstances i.e. the family company.
There are three situations where these agreements apply:
- Agreements prior to marriage or “pre nuptial agreements”;
- Agreements made during a marriage;
- Agreements made post separation as a method of severing the financial relationship.
When Financial Agreements are “binding” they remove the jurisdiction of the court to make an order with respect to the subject of the agreement.
Financial Agreements can be very useful including for asset protection for people wanting to cohabit together or in contemplation of marriage and a Binding Financial Agreement is the best method of providing certainty with respect to Spousal Maintenance rights.
Financial Agreement must also be approached with caution.
For a Financial Agreement to be binding it must comply with legislative requirements including that each party has received specific legal advice. If Financial Agreements are not properly drafted, and advice given, they can lead to more litigation and uncertainty should one party seek to have the agreement set aside.
Hooper Family Lawyers are family lawyers in Brisbane who can draft your financial agreement, and provide the requisite advice, to ensure your financial agreement is binding, and achieves what you intend.