Having a Binding Financial Agreement (pre-nup) provides advantages and a way forward for both parties in the event of a marriage or de facto relationship breakdown.
A binding financial agreement is applicable to both marriage and de facto relationships. You can enter into a financial agreement before, during or after the relationship. Most often an agreement occurs after a relationship breakdown.
A financial agreement to become a binding financial agreement requires the performance of specific criteria and failing to follow the Court's rules can be fatal.
Before entering into a financial agreement each party must obtain independent legal advice.
As family law accredited specialists our goal is to avoid the significant risks that may have a detrimental affect on you, if a property/financial adjustment is not documented in writing as early as possible after separation.
It is a common situation that you’ve managed to reach agreement on how you’re going to divide your assets. You may be happy with the outcome, so too the other party is happy.
It is understandable that once agreed that you don’t want to "rock the boat" and upset the other party and you want to keep the relationship amicable, for the sake of the children.
However in many cases things change and people regret earlier decisions.
A likely scenario is:
Any one of these things, could have you facing a situation where your partner decides later to change your “informal” verbal, non-legal property settlement agreement.
People on the friendliest of terms, will still look after themselves first and if they think their financial circumstances need it and they know the property settlement agreement reached, is not legally binding, then they may want more later.
The best time to get your former partner to agree to make the property settlement you have reached final, binding and enforceable, is:
If you both are prepared to make the property settlement you have agreed to final, then it should be natural to have this agreement documented into either Consent Orders or a Binding Financial Agreement.
Neither Court Consent Orders or a Binding Financial Agreement require an attendance at Court
If your former spouse doesn’t want to have Consent Orders or a Binding Financial Agreement, then you may want to ask why not – are they hiding something or hedging their bets to keep options open for the future.
If you reach agreement but want to keep things informal (without Consent Orders or a Binding Financial Agreement), you can be taking a big risk. Are you a gambler?
If you agree, why not put it in writing and get it legally enforceable, so there will never be any misunderstanding or attempt by one person to change things, if their circumstances change.
It would be nice to be able to rely on your former spouse’s word, but you are no longer together and the only thing you can have complete trust in, in relation to something as serious as your property and financial future, is a Court Order.
Greed & envy drive the termination of verbal agreements.
Also if your property settlement agreement is not legally documented you will not be able to:
Yes, by a court, if:
Calvin Nelson have Family Law Accredited Specialists that will provide you expert advice, specific to your unique situation on Binding Financial Agreement advantages and disadvantages.
Expert Advice from our Legal Specialists
Having a Binding Financial Agreement (pre-nup) provides advantages, a way forward for both parties in the event of a marriage or de facto relationship breakdown.
Separation, Mediation, Understanding Your Rights, and Reaching a Financial Settlement that is fair & reasonable to both parties.
In the event of a de facto relationship breakdown, it is important to be aware of your de facto relationship separation entitlements & obtain a financial adjustment
Prior to visiting a family law specialist you should prepare a list of the questions that you need to have answered. This will ensure important things are not missed.