What Is The Purpose Of Binding Financial Agreement In Australia?
Anyone entering into a spousal relationship or de facto relationship in Australia might wish to set up a legal agreement describing how property and savings will be divided in the instance of a divorce or relationship breakdown. This is known as binding financial agreement in Australia although many think of it as a separation agreement or perhaps a pre- or post-nuptial agreement. Regardless of what this agreement is addressed as, as long as it is valid and enforceable, the court will use it to split assets according to the wishes of the parties involved. What are the advantages of getting an agreement of this type?
When you start a binding financial agreement, you stay in control over your assets and decide which party gets which items. The emotional and financial costs of the court proceedings are reduced and you can set out to continue with your new life. Communication between past partners gets better with the use of a financial agreement along with your relationship as parents, if this condition applies, often works better. The best time to get to a financial agreement is when you're still acting as a couple so you can make reasonable decisions. Emotions are less likely to come into play when this happens.
How can you start establishing a binding financial agreement in Australia? Particular conditions has to be met to ensure the contract is valid and enforceable. Both individuals must seek independent legal advice from different legal practitioners before the agreement is signed. The legal practitioners are required to explain how getting into the agreement will affect the right of each party and outline the benefits and cons of an agreement of this type. A signed statement has to be furnished by the legal practitioner proclaiming that the advice was given and this statement should be shared with the legal advisor for the other party. Furthermore, any spousal maintenance to be supplied should be outlined in the document. The financial agreement in Australia has to be written and signed by both parties.
Particular situations can make a binding financial agreement in Australia unacceptable and unenforceable. Fraud is certainly one situation. If either party has failed to disclose a 'material matter', the contract can certainly be set aside by the court. The same is true if the agreement has been entered into for a fraudulent purpose. If there is a material change in circumstances, the court may set the contract aside and the same is true if some terms are voidable, void or unenforceable. Other situations may happen which make the contract unacceptable.
Never enter into a binding financial agreement without following these procedures. When you do this, the court will likely set the agreement aside as if it never ever existed. Work with legal council to have an agreement drafted. When you achieve this, you can save yourself a considerable time and frustration in case the relationship doesn't last.