Financial agreements can be entered into pre-marriage or pre-cohabitation, during a marriage or relationship and following the breakdown of the relationship or marriage. Parties in a relationship usually enter into financial agreements when they desire to have control and certainty over what happens to their assets if they separate.
Financial agreements are commonly considered where people are entering a second relationship or marriage. These agreements are also considered when there is a desire to quarantine an inheritance or gift from family. Financial agreements are also a very useful tool in family businesses and succession planning.
The decision to enter into a financial agreement is not to be taken lightly, as a consequence of entering into a legally binding financial agreement is that parties opt out of the courts’ jurisdiction and will not be able to seek the assistance of the court to pursue a property settlement entitlements that may normally apply pursuant to the Family Law Act.
If you are considering such an agreement, it is critical to obtain expert family law advice as the Family Court will set an agreement aside that does not comply with the Family Law Act.