Family Law – Binding Financial Agreements, are they necessary?
Binding Financial Agreements can be made either before, during or after marriage.These agreements take account of property settlement, payment of spousal maintenance, division of superannuation funds, etc when a marriage comes to and end.Both parties are required as a prerequisite to obtain independent legal advice prior to entering into a binding financial agreement in writing.
There are several reasons why parties enter into binding financial agreements, among them are :-
>> when parties believe that he or she has more assets on entering into the relationship, they would want to ensure that in the event they separate they are not made to part with their assets;
>> when parties do not intend to deprive their children or families of the benefit of their legacy;
>> when parties agree that they want to maintain their assets prior to the marriage and all contribution to the marriage as well as expenses thereafter are equal between the parties; and
>> when a party intends to make provision for a family legacy to stay within the family in the event of separation.
Separation is often very trying and becomes an expensive affair. Therefore, already having dealt with the issues that follow a separation,such as financial and property settlements,can be quite beneficial.The state of mind of parties are often more hostile during the separation process and they often fail to make reasonable and sound judgment.Further in the event parties are unable to come to an agreement, they often end up in court having the court decide how assets are to be divided. There are always risks as well as the added legal costs that parties will have to bear.Binding Financial Agreements allow parties to decide how to manage their assets and finances without having to go to court.
It is often important therefore to know what your rights are before entering into marriage or before entering into these agreements.It is important that you manage and protect your assets.Recent amendments provide De Facto partners with the same rights as married couples.Property brought into a relationship is often considered differently than that acquired during the marriage or relationship. Superannuation entitlements are now treated in the same way as property.
Therefore if you are considering entering into a new relationship or taking your relationship to the next stage or even for that matter intending to protect yourself in an undesired breakup, it would be worthwhile to give a thought to binding financial agreements and obtain legal advice as to your rights.
If you are interested to know something more about Binding Financial Agreements, are they necessary? and Family Lawyers then please visit our website www.laclawyers.com.au
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