Anyone getting into a marriage or de facto relationship in Australia might want to set up a legal agreement outlining how property and financial resources will be split up in the event of a divorce or relationship breakdown. This is referred to as a binding financial agreement in Australia although a few think of it as a separation agreement or maybe a pre- or post-nuptial agreement. No matter what this agreement is addressed as, as long as it really is reasonable and enforceable, the court will use it to divide assets according to the wishes of the people involved. What are the good things about getting an agreement of this type?
When you begin a binding financial agreement, you keep in control of your assets and choose which party gets which items. The emotional and financial costs of the court proceedings are cut down tremendously and you can begin to move forward with your new life. Communication between former partners gets better with the use of a financial agreement and also your relationship as parents, if this condition applies, often works better. The best time to get to a financial agreement is when you are still acting as a couple so you can make rational decisions. Emotions are less likely to come into play when this happens.
How do you start establishing a binding financial agreement in Australia? Particular conditions has to be met to ensure the contract is legitimate and enforceable. Both persons must seek independent legal advice from different legal practitioners before the agreement is signed. The legal practitioners are required to explain how going into the agreement will affect the right of each party and outline pros and disadvantages of an agreement of this type. A signed statement must be provided by the legal practitioner proclaiming that the advice was given and this statement should be shared with the legal advisor for the other party. Additionally, any spousal maintenance to be presented must be outlined in the document. The financial agreement in Australia has to be written and signed by both persons.
Certain situations will make a binding financial agreement in Australia unacceptable and unenforceable. Fraud is certainly one issue. If either party has failed to disclose a 'material matter', the contract can be put aside by the court. The same is valid if the agreement has been inked for a fraudulent purpose. If there is a material change in situations, the court may set the contract aside and the same is valid if some terms are voidable, void or unenforceable. Other situations may take place which make the contract invalid.
Never enter into a binding financial agreement without pursuing these procedures. When you achieve this, the court will probably set the agreement aside as if it never ever existed. Deal with legal council to get an agreement drafted. When you do this, you could save yourself a great deal of time and frustration in case the relationship does not last.
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