Binding Financial Agreements
Financial agreement is a written agreement between two or more people that is compliant with Part VIII or VIIIAB of the Family Law Act 1975 (Cth).
Financial agreements are similar to the well-known pre-nuptial agreement, but are signed before, during or after a marriage. Under Section 90D of the Family Law Act, financial agreements cover the following:
- division of property, finances and debts after a marriage breakdown
- spousal maintenance
- other incidental issues.
For financial agreements to be legally binding, both parties must have signed the agreement and have received independent legal and financial advice before signing.
The different types of financial agreements are:
- In contemplation of a marriage (s90B);
- In contemplation of a de facto relationship (s90UB);
- During a marriage (s90C);
- During a de facto relationship (s90UC);
- After divorce (s90D); or
- After a breakdown of a de facto relationship (s90UD).
A financial agreement outlines the parties' agreement as to their financial arrangements. Financial Agreements are intended to avoid the need for the parties to go to court in respect of property matters.
A financial Agreement may also include the parties' agreement on other issues such as maintenance, claims on the other party's estate after death and adult child maintenance.