What is a binding financial agreement?
A ‘binding financial agreement’, or ‘financial agreement’, is a binding legal agreement concerning financial arrangements should a marriage or de facto relationship break down.
A financial agreement can be entered into before a marriage or de facto relationship, during the marriage or de facto relationship, or after separation and divorce. Financial Agreements entered into before a marriage or de facto relationship are commonly referred to as a ‘prenuptial agreement’ but in Australia, legally it is known as a ‘financial agreement’.
Binding financial agreements explained
Watch our Melbourne Head of Family Law, Steven Edwards, explain binding financial agreements and related common questions below. Otherwise, keep reading for more information below the video.
These agreements can cover topics such as financial support, financial settlement or any other incidental issues. There are a number of requirements to be met in order for this agreement to be a legal document and binding for both parties, including that you both must have signed the agreement and received independent legal advice from a legal practitioner about the effect of the agreement on your rights and about the advantages and disadvantages, at the time the advice was provided, to you.
You cannot get legal advice from the same lawyer.
Reaching an agreement without going to court
There are many advantages to settling an agreement without going to court if this is possible in your circumstance.
- Dramatically decreasing the financial and emotional costs of legal proceedings.
- You are also able to make your own decisions.
- Your relationship with your ex-partner is likely to work better, especially if there are shared children involved.
Seeking proper legal advice
Before you make a decision about what option is best for you, you should seek proper legal advice. This will help you weigh up all your options and provide you with all the information you will need.
Your lawyer will also be able to provide you with likely outcomes regarding your specific situation as they are likely to have seen similar cases in the past. This will give you a better idea of what may be the best option for your scenario.
For related reading, see also:
- Reasons to get a prenup, even if you don’t consider yourself rich
- Should you sign a prenuptial before you walk down the aisle?
At Australian Family Lawyers, we are the experts in family law matters and can help navigate the legal landscape for you.
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