Binding Financial Agreements
Binding financial agreements are essentially a contract that deals with the following:
• How at least one of the parties’ property will be dealt with upon the breakdown of the relationship
• The maintenance of a party during, or after the break down of, the relationship
The agreement binds not only the parties, but also the courts. So, once an agreement is made, the courts no longer have the power to make orders concerning the matters dealt with in the agreement. This, of course, is subject to circumstances that allow the court to set the agreement aside.
Binding financial agreements are available to:
• Parties to a marriage;
• Parties contemplating a marriage; and
• Parties to a de facto relationship.
The following requirements must be met if a binding financial agreement is to be legally binding:
• The agreement must be signed by the parties to the agreement
• Each party to the agreement must obtain independent legal advice from a legal practitioner. The advice must cover the effect of the agreement on the party’s rights. It must also cover the advantages and disadvantages of entering into the agreement
• The parties must have obtained a statement from the legal practitioner certifying that the advice referred to above has been provided
• A copy of the statement must be given to either the other party or that party’s legal practitioner
If you are thinking about entering into a binding financial agreement, please contact out office to arrange for an initial consultation. We can discuss whether a binding financial agreement is suitable for you.