Binding Financial Agreements

Most people are familiar with the concept of a "pre-nuptial agreement" to protect property brought into a marriage. It has always been possible to protect your finances and property in a marriage by way of a pre-nuptial agreement. However these pre-nuptial agreements had doubtful effect in Australia.

What is a binding financial agreement?

A financial agreement can be made before, during and even after separation or divorce. When made after breakdown of a marriage, or de facto relationship, the financial agreement is used as a settlement device.

A financial agreement may deal with how your property is to be dealt with upon the breakdown of the marriage or de facto relationship, how one or both parties are to be maintained during and/or after that breakdown.

In December 2002, the Western Australia government allowed de facto and same sex couples to enter into binding financial agreements.

Why should I speak to Paterson & Dowding?

When you enter into a binding financial agreement, you agree to contract out of the laws contained in the Family Law Act (in the case of people who are or were married), or the Family Court Act, (in the case of people who are or were in a same sex/de facto relationship). If you feel you may need the various protections contained in the legislation, it is essential to obtain the best possible legal advice so you are fully aware of what rights you might be giving away.

Alternatively, if you specifically want to control your financial affairs without any intervention by the Family Court, you need to ensure that your agreement is properly drafted so it is actually 'binding'. There are very strict legal requirements to be observed to create a Binding Financial Agreement. A financial agreement can be set aside by the Family Court if it does not comply with the legislation.

At Paterson & Dowding, we have a team of family law specialists who can evaluate your situation and advise you as to what type of an agreement will best suit your circumstances. Although there is obviously some cost in preparing a financial agreement, a properly drafted agreement can avoid lengthy disputes and high legal costs.