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Financial Agreements
Financial Agreements
Parties who agree on arrangements for their finances and property can formalise the agreement outside of Court by entering into a Financial Agreement.
A Financial Agreement is a contract between two or more parties (married or de facto) under the Family Law Act. A binding Financial Agreement ousts the Court’s jurisdiction about the specific issue which is the subject of the Financial Agreement.
A Financial Agreement can cover all the aspects of finances and property of the parties or can be limited to a specific issue.
Types of Financial Agreement
Marriage
Parties can enter into a Financial Agreement before marriage, during marriage or after the marriage.
De facto
Parties can enter into a Financial Agreement before de facto relationship, during de facto relationship or after the de facto relationship.
For a Financial Agreement to be binding there are some certain technical requirements prescribed by the Family Law Act such as a mandatory requirement for each party to receive independent legal advice before entering into the Financial Agreement.
Advantages of Financial Agreements
- Parties have the power to negotiate the agreement.
- Simple and cost effective.
- Terms of the Financial Agreement are not disclosed and do not form part of ´public record´.
- Parties must receive independent legal advice.
- Financial Agreements can be pre, during and post relationship (marriage or de facto).
Disadvantages of Financial Agreements
- There is no register of Financial Agreements and parties must keep the original in a safe location.
- The Courts have more grounds to set aside the Financial Agreement then consent orders.
- No requirement to comply with statutory requirement of financial disclosure.
- No requirement that the agreement be just and equitable.
- Cannot adequately provide for unforeseen future events.
The above should not be treated as legal advice but general information and if you are thinking about entering a Financial Agreement, you must seek legal advice.
To obtain advice on your RIGHTS, call AMA Legal on (02) 8610 3764 or 0431 630 158.
