A binding financial agreement is similar to a contract between the parties. Its role is to determine what happens to property if a relationship fails. Binding financial agreements might also make allowances for the payment of spousal maintenance if a relationship ends.
This agreement can be drawn up, during or after a marriage or de facto relationship. It is only possible to set aside binding financial agreements in restricted circumstances. To prepare and activate a binding financial agreement legal advice should be sought so that any agreement is unlikely to cause a dispute.
If an individual has considerable assets to protect, it is a good idea to have a binding financial agreement, because if it is valid the courts have no jurisdiction when it comes to the distribution of property in a family breakdown.
A binding financial agreement can be produced before a marriage or cohabitation takes place, when marriage or cohabitation has commenced and following a divorce or de facto relationship breakdown.
Binding financial agreements are designed to distribute money and assets if a relationship breaks down. They can cover maintenance issues as well as property and money issues, but not matters relating to parenting.
A binding financial agreement that is valid can eliminate the court’s capability to hand out orders with regards to distributing assets or resources. These can otherwise be done under Family Law Act (the Act). Additionally a binding financial agreement can remove the paying of maintenance to the other person.
It is possible to vary an agreement if the circumstances of those involved have altered.
The court is not usually involved in binding financial agreements unless