Binding Financial Agreement - Protecting Assets in a New Relationship

You may be thinking how can I protect my assets as I enter a new relationship?

Parties seeking to provide certainty and avoid litigation in the event of

separation may consider entering into a Binding Financial Agreement, that directs how

parties divide their assets (including superannuation) and spousal maintenance.

A Financial Agreement is a legally binding contract made between parties to a

marriage or de facto relationship that records how their property (including

superannuation), Financial resources and spousal maintenance will be dealt

with in the event of separation or divorce. 

To ensure the Financial Agreements are binding and enforceable by the Courts,

the Agreement will need to meet certain requirements, and both parties must

voluntarily enter into the Agreement and obtain their own independent,

separate legal advice.

Financial Agreements can be a useful tool to protecting assets acquired before

the relationship, providing for children from previous relationships, managing

business or family trust interests or simply to ensure that there will be a limit

dispute in the event of separation.

Financial agreements are complex and must be drafted with care to ensure

compliance with statutory requirements. Poorly drafted agreements are

vulnerable to challenge and may be set aside by the Court. Further, Financial

Agreements may not be suitable in all circumstances, particularly where there is a

significant power imbalance or lack of disclosure.

Please arrange an appointment with one of our solicitors at Gannon Family Law

to discuss if a Financial Agreement is suitable for your particular

circumstances.