A financial agreement is an agreement between two or more people that complies with the Family Law Act 1975, and specifically in this case relate to relationship breakdowns, and what happens afterwards. This document is legally binding so long as both parties have signed it, and received independent legal advice prior to doing so. If you need independent legal advice, contact Vanessa Ash.

     Things that need to be decided in the financial agreement:

• How property, finances, and debts will be divided
• What splits, if any, are required for superannuation savings
• Any spousal maintenance to be paid
• Estate claims after death
• Adult child maintenance

     Financial agreements might be:

• In contemplating a marriage or de facto relationship
• During a marriage or de facto relationship
• After a divorce or the breakdown of a de facto relationship

     Things to know
A financial agreement is not a court order, however a court is required to determine validity, enforcement, or any elements of the law that require it. There is no copy kept in court, so if the files are lost or damaged, no other copy remains. This is up to you.

Financial agreements are somewhat new to the court system in family law, so the history of challenges to financial agreements is also short. That means not very many precedents are before your case, and there may be unexpected results.

• These agreements are binding after death.
• The agreement can include third parties like family members, creditors, companies and trusts.
• Every person involved in the agreement must seek their own independent legal advice.

These agreements are important legal documents that could dictate important financial outcomes later. It is not a mere formality. Get good advice. 

     Your checklist

1. Plan ahead.
2. Talk it over.
3. Think about all your options, including other interested parties you need to protect against/include.
4. Take it seriously.
5. Check your agreement carefully.

     When a financial agreement can be terminated/is invalid:

• If fraud is involved
• If defrauding a creditor or investor was the purpose
• If it is void or unenforceable due to undue influence, breach, waiver, etc.
• Impracticalities – changes in circumstances make the agreement enforcement impractical
• Hardship, in particular with a child
• Unconscionable conduct
• Superannuation
• An unsplittable interest
• Other interests must be included
• If both parties agree to terminate the old agreement, and either not replace it, or replace it with a new version

Write your own story. Call Vanessa Ash and Associates today.