Pre-Nuptial Agreement

Taking control of finances and property can be challenging, especially when it involves the rights and interests of two parties in a marital breakdown. However a well-drafted financial agreement has the potential to protect marital assets and achieve a more tailored divorce settlement.

A financial agreement is a written agreement that deals with the finances, property and maintenance of parties in a marital relationship. Financial agreements can be made before, during or after marriage. Parties to a de facto relationship can also enter into a similar agreement called a "cohabitation agreement".Financial binding agreements complies with Part VIIIA or Part VIIIAB of the Family Law Act 1975 (?the act?).

So even if you are contemplating marriage or are entering a de facto relationship, you may be able to save significant costs if you formalise how your assets will be divided in the event of a relationship breakdown.

For a binding financial agreement to be legally valid, a number of requirements have to be met. These include:

• each party must have received independent legal and advice before signing the agreement
• each party?s solicitor must provide a certificate that such advice has been given
• the agreement must clearly say that it is an agreement under the appropriate section of the Family Law Act
• each party must have signed the agreement
• each party must receive a copy of the signed agreement

Expert legal advice is essential because of the binding nature of a financial agreement and limited intervention by the Courts. Our family lawyers will help you draft your agreement to:

• Best protect your assets ? including inheritance;
• Ensure it complies with formal requirements set out in the Family Law Act;
• Provide certainty;
• Protect ownership and retention of any business/commercial interests;
• Prevent potentially costly and time-consuming litigation; and
• Provide peace of mind when looking after your assets in the event of a marriage breakdown.

Please be warned, that so-called online ?kits? and other downloadable databases of so-called ?precedent? clauses will not be effective in putting in place a Binding Financial Agreement to protect future assets.

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Because binding financial agreements involve many technical aspects which can include issues relating to family and property law, it is essential that a person who is considering entering into a financial agreement, varying an agreement, or have the agreement set aside, to always seek legal advice in relation to their matter.