What should you know about Financial Agreements?
Financial Agreements are private agreements, between parties to a marriage or a de facto relationship. They can be made prior to, during or after separation or divorce of a de facto relationship. Binding Financial Agreements are made under the Family Law Act. In the Act they are referred to as ‘Financial Agreements’.
The terms ‘Financial Agreement’ and ‘Binding Financial Agreements’ when used mean the same thing.
Financial agreements do not need to be approved by the Family Court or registered in the Family Court. Financial agreements can deal with all property, including superannuation, financial resources and /or maintenance of the parties to the marriage or de facto relationship. They do not deal with parenting arrangements for the children of the relationship.
The main advantage of a Binding Financial Agreement is that it requires no court appearance. Further a financial agreement is effective upon signing by both parties, and as such there are no court delays or adhering to court timetables.
The main disadvantage of entering into a Binding Financial Agreement is that the agreement does not have an independent third party., It is extremely important that if you are entering a financial agreement, that you fully understand the terms of agreement.