The Family Law Act 1975 provides for parties to a marriage or de facto relationship to enter into a binding legal agreement about the financial arrangements should their marriage or de facto relationship break down. These are known as ‘Financial Agreements’.
You can enter into a Financial Agreement before, during or after a marriage or de facto relationship. These agreements can cover:
• financial settlement (including superannuation entitlements) after the breakdown of a marriage or a de facto relationship;
• financial support (maintenance) of one spouse by the other after the breakdown of a marriage or a de facto relationship;
• any incidental issues.
For a Financial Agreement to be legally binding, both parties must have:
• signed the agreement; and
• received independent legal and financial advice before signing.
Real property transfers that occur pursuant to a Financial Agreement are exempt from stamp duty. Financial Agreements can be expensive to prepare and for that reason are mostly used when the parties have a large and/or complex asset pool or where they are seeking to set out the arrangements upon separation at the commencement of their relationship to create certainty for both parties.
Legal advice from a qualified and experienced Family Lawyer is imperative before considering entering into a Financial Agreement…