Abiding Laws Of Having A Binding Financial Agreement
It is tempting to call binding financial agreements “pre-nups”, but this disregards most of the picture. Binding financial agreements may appear at any point before, during and after a marriage ends. In essence, these clarify the whole process of what occurs upon divorce such as how assets are to be partioned and whether, and how much, routine maintenance will be supplied. Why Should I Want a Binding Financial Agreement? That’s a good question. In the end, you two love each other and it’s “till death do us part.” Acquiring a financial agreement may thus be viewed as appealing fate. And, unless you’ve just landed the prime role in the latest blockbuster movie or won the lottery, you may believe it isn’t worth the trouble.
But binding financial agreements can take care of any type of asset, contingency or consequence you can imagine. They can detail routine maintenance, splitting up of assets (whether purchased before or throughout the marriage), how the children (if any) are to be cared for. As a result, these are perfect for safeguarding any asset that has expressive value for you, regardless of whether it is also financially useful. They can therefore be used to safeguard your grandmother’s priceless china collection that she bequeathed you.
Binding financial agreements as a result provide comparable certainty in the unlucky event that your relationship does stop working. Without having a financial agreement, if you do end up in court, your decision will be based on what the judge deems to be correct, just and equitable in the situations, not how you make a decision. The results of this process are unknown until a determination is made, and even then it may be appealed, leading to a long process. On the other hand, a binding financial agreement provides certainty in advance. Further, because it's an agreement, the parties do not have to obtain equal shares of the assets, although may certainly choose to do so.
Divorces and separations are distressing enough already. Emotions are typically high. Adding uncertainty and lawsuits to the mix does not suggest a good outcome for either person. Thus, a financial agreement should resolve a number of these challenges.
As the agreement is binding, you don’t have to show up before a court. Actually, they prevent either party from applying to the Family Court over assets or dealings that the financial agreement covers. This cuts out all the linked legal costs that are often included in protracted divorces. Ultimately, this implies more assets for both of you following the divorce. Since you don’t have to show up before court, this also means you don’t have to make financial disclosures to the court. Fundamentally, they are types of legal and financial insurance in the worst case scenario.