A financial agreement is a document which primarily records how the assets and financial resources of a couple in a marriage or a defacto relationship are to be divided if there is a breakdown of the marriage or the defacto relationship.
Financial Agreements can be prepared either:
For couples who are about to enter into or who are already bonded by a second relationship, financial agreements have a specific and practical attraction because:
From the practical viewpoint the attraction of a financial agreement is twofold:
Putting it in perspective, it is not uncommon for financial disputes between separated couples to cost each party between $25,000 to $200,000 plus. Clearly this is money better spent in rebuilding the future.
Doing it right
A financial agreement to be binding must comply with a number of technical and complex requirements that are set out in the Family Law Act.Failure to comply with those requirements can be fatal because the agreement will then simply not be binding.
Where the financial affairs of a party or of both parties to a relationship are complex, complying with those technical requirements is also complex.
For these reasons a skilled and experienced family lawyer is best able to advise parties about a financial agreement, is best able to draw a financial agreement and will know about the technical requirements that must be complied with to make an agreement binding.
There is no point in wasting any time, effort or money in preparing a financial agreement which will not be binding or which will not have the intended effect.