You maybe planning marriage soon or are currently in a relationship and it’s time for you to consider your financial concern with your partner. You may have certain expectations and if anything goes wrong in the future you would need to be protected. The question you ask yourself is whether you may need a binding money agreement? What is a Binding Financial Agreement? It is usually popularly known as a pre-nup agreement, prenuptial agreement or a monetary agreement. By having one it may also enhance a good relationship throughout a marriage and reduce struggle when a marriage doesn't last. As studies point out almost 1/3 of marriages end in divorce and there's a pattern towards people marrying at older ages. In 1971 the typical age was about 24 whereas now the figure can be somewhere in the early 30’s.
Since people are marrying more mature and stepping into marriages with a lot more greater properties and assets and a larger value, it is not unexpected that with high divorce rates, people (and their families) wish to protect their assets.‘Pre nuptial’ Agreements have been popular for quite a while, however it was not until 27 December 2000 these agreements were ‘binding’ under the Family Law Act. The Binding Financial Agreement can take care of two main areas: property and maintenance. It can point out the property or financial resources, both parties bring to the marriage and acquire during the marriage and if the marriage fails where to be divided. These agreements can also cope with protection of the parties during the marriage and after the marriage.
What Are The main advantages of Binding Financial Agreements? The advantages a Binding Money Agreement are two fold. Firstly, it gives each party with additional control over their assets and greater choice about their own financial situation. Secondly, such an agreement reduces struggle and the possibilities of a law suit in case the marriage stops working. If you're contemplating marriage and either you or your future spouse holds major investments (or major debts), or if you find a significant dissimilarity in wealth, then a binding financial agreement is a thing you should look at. It can be the case that, by moving into a Binding Financial Agreement, you will be allaying the concerns of the in-laws, or your family, in respect of protecting pre-existing sources and wealth. Nonetheless there are disadvantages in having this Agreement. The Family Law Act won't give any type of Court approval or acceptance or ratification. Quite a few monetary agreements have been completely voided or reserved on ‘technicalities’. It's not at all enough that an agreement describes the agreement among two parties to a marriage or proposed marriage, and is signed by the parties after having received separate legal advice. These agreements must strictly adhere to current legislative options, or else the agreement is going to be non-binding and unenforceable, and the charge and the undertaking needed in the preparation of the agreement will all be for nothing.
It is therefore important that whoever drafts your binding financial agreement or endorses you of your rights within proposed binding financial agreement is qualified and familiar with Family Law and Binding Financial Agreements. It’s crucial that the Solicitor who drafts your Financial Agreement, will supply you with unbiased legal advice on the binding financial agreement, are knowledgeable and proficient in Family Law and Binding Financial Agreements, and are up to date with the Family Law legislation.Whilst binding financial agreements might be binding, there are circumstances in which a Court may set aside a financial agreement. These situations include fraud, unconscionability, or if there's been a material change in instances and consequently of the change a party to the agreement will experience trouble if a Court will not set aside the agreement.
Whilst you'll find parties who are against ‘pre nups’ and say that such agreements are based on the principles of affection and trust involving parties getting in a marriage, the functional attributes of binding financial agreements help to increase a harmonious relationship and minimize the likelihood of dispute and court costs in the future. It’s always important to see a qualified lawyer to help you to draft your binding financial agreement and if you are trying to find an expert team to achieve this for you, visit our website at Binding Financial Agreement to learn more.
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