Binding financial agreements which can be made before, during or after a relationship or marriage to provide comfort and security to both parties who sign it. They can prevent or resolve issues before or after they arise and give you peace of mind. Here is everything you need to know.
What is a Binding Financial Agreement?
Australia’s Family Law Act allows you to enter into a legally binding financial agreement when you are married or in a de facto relationship or when you are going through separation or divorce. There are different types of this agreement, and they are also commonly referred to as:
- Pre-nuptial agreements
- Post-nuptial agreements
- Cohabitation agreements
- Separation agreements
- Divorce agreements
These agreements can be made in any stage of your relationship or during and after separation, and they are valid for heterosexual as well as same-sex couples. Their purpose is to determine how you and your partner will divide your property and assets if or when your relationship fails. Since these agreements need to be meticulously formulated by someone who knows Australian law, it is highly recommended that you seek help from family lawyers Perth-wide.
What Does the Binding Financial Agreement Cover?
Binding financial agreements typically cover all the issues related to property, finances, superannuation, and maintenance. Here are some of the problems this binding document can resolve as they arise:
- Protecting existing assets
- Protecting inheritances
- Preserving family business
- Ensuring that the party with the higher income supports the party with the lower income
- Preventing disputes about financial issues after the relationship/marriage ends
Benefits of the Binding Financial Agreement
The key benefit of a binding financial agreement is that it enables you to reach an amicable agreement with your partner and avoid court proceeding. It helps reduce stress, allow smooth communication and prevent conflicts once your relationship comes to an end. Best of all, it is never too late to make a financial agreement. You can do it at the beginning of your marriage or relationship to prevent problems in the future, or while you are going through a separation with assistance from divorce lawyers. Perth couples who are experiencing difficulties in communication with their partners can also benefit from mediation or arbitration services.
Is There an Alternative Solution?
If you can’t reach an amicable agreement with your partner, you can apply to the Family Court of Western Australia for a Consent Order. Both documents are legally binding but Consent Orders need to be approved by the court and proved ‘just and equitable’ in accordance with the court’s criteria. They are also enforceable, which means that the court can order you to transfer money or property, sign documents etc.
How Can a Family Law Firm Help?
Professional family lawyers can take the stress out for drafting or signing binding financial agreements. With expert knowledge on Australian family laws and attention to detail, they will ensure that the document is perfectly formulated and double-checked before you sign it. Additionally, you can also ask for family mediation. Perth lawyers with experience in arbitration can help you reach a friendly agreement with your partner without unnecessary stress and disputes or represent you at the court when needed.