de facto partners may enter into a financial agreement during their relationship
a financial agreement between partners sounds very unromantic. talking about the possibility of having a financial agreement regarding your properties could be misinterpreted for doubt, lack of trust and imminent separation.
Nevertheless, couples should recognize that these days romance is no longer enough in a relationship. Lovers need to be sensible and efficient too.
What is a financial agreement for de facto partners?
Financial agreements are written agreements which de facto partners can execute during their relationship. The agreement will contain terms and conditions that will stipulate how the parties want their properties to be owned, distributed and divided during the relationship and in the event of separation.
The subjects of the agreement may also include spousal maintenance, superannuation, debts, financial sources, inheritances, gifts, business interests, other financial sources, claims against the estate of the other partner and adult child maintenance.
Parties can agree to exclude future inheritance and certain properties from the asset pool of the relationship.
The primary advantage is that it will give you peace of mind. No more having to continuously talk about sharing and division. The agreement will speak for itself and all that the parties then have to do is refer to it. No more having to count out the dollars and the shares. Parties will not waste time anymore rehashing again and again how to divide their earnings.
If you have children from a previous relationship you can protect their interests by making the necessary stipulations in the agreement. This way, the inheritance of the children will be assured.
In case the parties will separate they don’t have to go to court to settle their property affairs. So it also saves on court and attorney’s fees.
It is the parties who will control their own property affairs. The court will not interfere with what has been agreed upon as long as there has been compliance with the legislative requirements.
First of all, as de facto partner at the time of executing a financial agreement you must not be spouses-parties to a financial agreement that is binding upon you.
Simply talk with your partner about executing a financial agreement that will stipulate for the subjects mentioned above. Then each of you must consult a lawyer to comply with the requirement of having received independent legal advice. It is best to have the lawyers draft the agreement to make sure that all legalities are covered.
You must make a full and frank disclosure of all your assets and debts. A financial agreement can be set aside by the court due to due to fraud or for being unjust and inequitable. So be very honest in dealing with your partner.
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.