The dissolution of a marriage or a de facto relationship can be a challenging and emotionally draining experience for all parties involved. One of the most critical aspects of this process is sorting out the financial matters. A financial agreement is a way for parties to agree on how their assets, financial resources, and debts will be divided without the need for court intervention.
A financial agreement is a legally binding contract between two parties that sets out how their assets, financial resources, and debts will be divided upon separation or divorce. These agreements can be made before, during, or after a marriage or de facto relationship. They are sometimes referred to as 'prenuptial agreements,' 'postnuptial agreements,' or 'binding financial agreements.'
For a financial agreement to be legally binding under Australian law, it must meet the following requirements:
It is essential to ensure that the agreement meets all these requirements; otherwise, it may not be legally binding.
While the purpose of a financial agreement is to provide certainty and avoid court intervention, there are certain circumstances where a court may set aside a financial agreement, including:
Financial agreements can be a valuable tool for parties to resolve their financial matters upon the dissolution of a marriage or relationship. However, they must be carefully drafted and meet all legal requirements to be legally binding. It is highly advisable to seek independent legal advice when entering into a financial agreement to ensure that your rights are protected and the agreement is enforceable. If you believe that a financial agreement should be set aside, it is crucial to seek legal advice as soon as possible, as this is a complex area of law.