

Binding Financial Agreement in NSW
A Binding Financial Agreement in NSW can be an invaluable tool when navigating the complexities of relationships, read more the benefits here.
It’s important to consider entering a binding financial agreement before getting married or living together in NSW. Litigation causes emotional and financial distress, not only to the parties involved, but also to their kids and family. Having a binding financial agreement helps you reduce the stress of the separation, so you can move on faster.
We all dream of having a ‘happily ever after,’ and spending the rest of our lives with the love of our life. However, reality sometimes has different plans and we end up separating, no matter how hard we tried to hold on. Some married and de facto couples break up amicably and even become friends long after ending the relationship. While this is ideal, not all relationships that break down are lucky enough to become friendly. Some couples go through ugly and lengthy arguments that often lead to expensive legal disputes.
A binding financial agreement in NSW is enforced under the Family Law Act 1975 (Cth). It also applies to de facto relationships and same-sex marriages. Moreover, it follows the same process as in other territories, except for Western Australia.
Binding financial agreements enable couples to agree on how to manage and deal with their financial matters when their relationship breaks down. It is a legal document that outlines your and your partner’s reasonable terms for dividing your assets. In particular, it covers your personal and business assets, superannuation, financial and tax liabilities, inheritance and spousal maintenance.
A binding financial agreement promotes a more amicable separation when your relationship is no longer workable. It determines how you will fairly and reasonably manage your assets and finances during the course of your relationship. It covers issues such as:
Consider entering a binding financial agreement if you:
A binding financial agreement allows you and your partner to decide the terms for dividing your assets in advance. Hence, it is advisable to enter an agreement before you take your relationship to the next level and get married or live together as a de facto couple.
You can enter a binding financial agreement at any point of your relationship – whether before, during, or even after. There are several types of agreements available depending on your and your partner’s circumstances:
Entering a binding financial agreement requires your and your partner’s mutual decision to protect both interests. Moreover, the both of you should be satisfied on how your terms are set out in the agreement. Hence, you and your partner are required to seek independent legal advice to ensure you understand exactly what you are agreeing to.
A financial agreement is pretty straightforward with setting out the terms for the separation of your assets. However, the process required to make it legally binding and enforceable in NSW can be quite complex. To make your agreement binding, you and your partner must:
If you have satisfied the above process, then your financial agreement will be considered binding and enforceable in NSW. However, it is imperative that an experienced Family Lawyer drafts and prepares your agreement. This ensures that your agreement is in compliance with the Family Law Act and can be upheld against challenges.
A binding financial agreement gives you more control and freedom over how to divide your assets while avoiding future claims. However, the courts in NSW can easily dismiss a binding financial agreement. Some reasons for a dismissal include:
Hence, it is imperative that you or your partner provide a full disclosure of your assets and circumstances. This will help you make more informed decisions about dividing your assets and liabilities.
It is also important to have your agreement reviewed and updated when your and your partner’s circumstances change. In particular, an update of your agreement is necessary when the circumstances involve having a child or children.
The process for entering a binding financial agreement in NSW can be quite complex. However, if correctly executed, your agreement can be beneficial for both you and your partner.
A binding financial agreement is more than just a document detailing your assets and how you will divide them. It also helps you protect the investments that you have worked hard for and the assets that your family will pass on to you. Entering an agreement also gives you a sense of comfort and certainty about your future financial resources. Moreover, it can help you and your partner maintain a friendly relationship, so you can work together in the long-term.
VC Lawyers have Family Lawyers with extensive experience in providing legal advice, and drafting and preparing financial agreements. Whether you are married, getting married or a de facto couple, we can guarantee your agreement is binding and enforceable in NSW.
Our Family Lawyers will carefully consider your circumstance and identify loopholes to ensure the court doesn’t terminate or dismiss your agreement. We will negotiate your terms properly to achieve the most favourable and reasonable outcome for you.
Reduce the chances of going through ugly arguments with your partner, and expensive and lengthy court disputes that can lead to unfavourable results. Talk to us and find out how VC Lawyers can help you prepare a binding financial agreement.
A Binding Financial Agreement in NSW can be an invaluable tool when navigating the complexities of relationships, read more the benefits here.
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