Financial Agreements

Financial Agreement

financial agreement

Financial Agreements

What is a Financial Agreement?

A Financial Agreement is a private contract between partners that outlines how assets and finances will be divided in the event of separation. 

It’s not limited to marriage; individuals in any domestic relationship can enter into this agreement before, during, or after the relationship ends.

There are three main types of financial agreements that can be entered into, including:

1. Prenuptial  

2. During relationship and  

3. Post-Separation  

Benefits of a Financial Agreement:

  • Safeguard assets acquired at the relationship’s start, offering clarity on division during separation.
  • Manage finances and asset accumulation during the relationship, relevant to prenuptial or during relationship agreements.
  • Outline any maintenance agreement, including one which protects against future claims.
  • Reduces the need for costly litigation and avoids substantial delays associated with a long and protracted court process, which can take 12–18 months or more for a disputed claim.

Why is a financial agreement necessary?

Any informal agreement entered into, even a written agreement, that outlines how your assets are divided is unenforceable if not documented by either a binding financial agreement or a court order.

Superannuation funds will not comply with any division that is not documented correctly, so you may be missing out on dividing a very important and substantial asset of most relationships.  

The transfer of property, while it can be done informally, will attract stamp duty if not done pursuant to an order of financial agreement.

What are the Costs?  

The cost of preparing varies and is specific to each matter, as it takes into consideration the complexity of the parties’ finances, the type of agreement to be drafted, and the factors that must be considered. 

For example, a prenuptial will need to consider more complex future arrangements and provide for the possibility of future changes such as children, that will not be necessary in a post separation agreement.  

However, the cost associated with a Financial Agreement is always a more `cost effective’ alternative to litigation.  

Cornerstone Law Offices provides a free initial consultation. Take advantage of our specialised expertise available in Logan, Brisbane, North Lakes, and Gold Coast. Contact us without delay!

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