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Financial Agreements

What is a Binding Financial Agreement?

A Financial Agreement (also known as a Binding Financial Agreement) is a written agreement entered into between partners or former partners in accordance with the Family Law Act 1975. It deals with issues including the division of assets, liabilities and financial resources in the event that the relationship breaks down. At Davoren Associates, we can guide you through this complicated matter.

Financial Agreements can be made in contemplation of living together, during a de facto relationship, in contemplation of marriage, during marriage and after separation and divorce. It is a good way of finalising the property without the imposition of the Court, which ultimately shall make a decision which neither of you may be satisfied with, such as prenuptial agreements.

Why get a Financial Agreement?

The aim of a Financial Agreement is to encourage parties to agree about how their matrimonial property should be distributed in the event of or following separation. Agreements allow parties to have greater control and choice over their own affairs in the event of marital or de facto relationship breakdown.

When drafted in accordance with the Law, the Financial Agreement works to prevent either party from making an application to the Court in the event of separation for the division of the property assets.

Key Elements in a Financial Agreement

The key factors with respect to a Binding Financial Agreement are:

  • Both parties must make full and frank disclosure of their assets, liabilities and financial resources prior to signing the Financial Agreement;
  • Both parties must receive independent legal advice from a legal practitioner with respect to the effect of the Financial Agreement and the advantages and disadvantages of making the Financial Agreement.

Once the Financial Agreement is signed, it is not registered or filed in the Court but kept between the parties for future use.

If one party does not comply with the Financial Agreement, the other may make an application to the Family Law Courts to obtain a Court Declaration that the Financial Agreement is binding and then seek for the Court to make orders in the terms of the Financial Agreement.

At Davoren Associates, our experienced family lawyers can assist you through the complex requirements necessary to finalise a Financial Agreement. Contact Davoren Associates in Surfers Paradise with your query today.

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