Author: Carol Pages, Pages Family Law.

A binding financial agreement, sometimes called a ‘pre nup’, is an agreement between a couple about how their assets will be divided if they separate.  You can enter into a financial agreement before, during our after your marriage or de facto relationship. Our previous article in the series can be found here: When should you consider a financial agreement? | Family Law.

Some of the more common questions we get about financial agreements are:

• – Do I really need a lawyer for a financial agreement? 

• – We have agreed how we will divide our assets if we split up and we’ve signed it – isn’t that enough?

• – What if I don’t do a financial agreement – what are the risks?

In Australia the Family Law Act sets out very strict criteria in relation to the requirements for financial agreements, that must be complied with for the agreement to be binding.  Even if your agreement is binding, the Courts have discretion to set aside your financial agreement in some circumstances.

Do I really need a lawyer for a financial agreement?

Yes.  Both parties need independent legal advice about the effect of the agreement on the rights of that party, and the advantages and disadvantages, at the time the advice was provided, to the party of making the agreement.

We have agreed how we will divide our asset if we split up and we’ve signed it – isn’t that enough?

No.  It is not binding.  Seek legal advice if you would like a legally binding agreement, or if you have separated and need to resolve your property division.

What if I don’t do a financial agreement – what are the risks?

If you separate, you will need to consider how to divide your assets.  Obtaining legal advice early will assist in giving you options to resolve your property division in the most timely and cost effective manner possible.  For further information about the property division process after separation, refer to our earlier article: Family law property division – How does it work? | Family Law.

If you would like advice about financial agreements, please contact Pages Family Law.

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The content of this article is provided for information purposes only and does not constitute legal advice. We recommend that you seek legal advice relevant to your own circumstances and we would be happy to assist you.

Carol Pages is the Principal of Pages Family Law and an Accredited Specialist in Family Law and a Nationally Accredited Mediator. If you would like advice about your own separation, please contact Pages Family Law at info@pagesfamilylaw.com.au or on 03 9121 8077.