11 GOOD REASONS TO PUT A FINANCIAL AGREEMENT INTO PLACE
- 4 Financial Agreement is a legally binding document between two people that can put in place to determine how their assets and liabilities will be divided if the relationship breaks down. Here are eleven excellent reasons to
use a Financial Agreement...
- Knowing in advance how matters will be dealt with in the event of a relationship breakdown provides peace of mind.
Protection of assets
- For some couples, it is important to know that their assets will be passed onto their children or other loved ones. This is particularly important for mature couples of a second relationship who have already accumulated
wealth and property.
Protection of inheritances
- It is common for some parties to enter into a Financial Agreement solely to protect inheritances. This ensures that the inheritance will stay within the family (and future generations) rather than being passed onto a stranger.
Quarantine of assets accumulated prior to the relationship
- In Australia, unlike some other countries, the property held by the parties prior to the relationship is added to the asset pool by the courts when dividing assets. A Financial Agreement allows a party to quarantine assets
accumulated before the relationship commenced.
- Financial agreements allow couples the opportunity to take financial matters into their own hands, rather than placing that power in the hands of the court. By correctly implementing a Financial Agreement, you are
effectively ousting the jurisdiction of the court to intervene and decide how your property will be divided.
Allows you to come to an agreement in an amicable way
- Discussing an exit strategy now, allows you to deal with division of property in a non-combative, amicable way. rather than dealing with these issues in the midst of substantial change, grief and hurt feelings that are
associated with relationship breakdowns.
Saves time and money associated with divorce
- A Financial Agreement helps facilitate a smoother journey through property settlement which will save you substantial time and money, this allows both parties to move on earlier rather than be engaged in ongoing
negotiations and discussions at this time.
Provides a "business plan" for the relationship
- Having an asset plan in place can assist the parties to understand and grow their personal and joint assets in confidence.
- A Financial Agreement prompts open and honest communication. Working through and discussing the issues makes each partner aware of each other's wishes and intentions. This allows both parties to enter into the
marriage with a greater understanding of themselves and the other. This will...
Lastly, financial agreements can protect you from your spouse's debt!
- As well as specifying how assets are to be apportioned and divided, financial agreements can also specify who will be responsible for debt incurred either before, during or after a relationship.
Remember you can use a Binding Financial Agreements at any stage of a relationship (before, during or after) whether you are married or just living together (defacto) | For more information please visit