What should you consider for a Binding Financial Agreement?
A Binding Financial Agreement requires careful consideration of what might happen during a relationship and how the couple might plan their finances.
You and your partner should discuss your future plans including:
- whether you both intend to work during the relationship;
- whether you plan to have children;
- what arrangements there will be in relation to children that either of you currently have;
- what will happen if either of you can’t work because of illness or injury or the need to care for a disabled child;
- whether you wish to make special provision in relation to inheritances and if so what you expect to receive and what you expect to do with your inheritance;
- what provision you each intend to make for retirement;
- how you intend to meet your financial commitments and pay your living expenses;and
- whether you intend to have a joint bank account or intend to keep your finances separate.
After discussing your plans and considering how you will handle any unexpected situations, you should talk to your lawyer. A detailed statement of your current income, assets and liabilities will be needed. Also bank statements, shareholding and dividend statements, superannuation statements and other investments should be provided. You should not neglect to provide information about any of your assets or liabilities and you should provide information that is as up to date and detailed as possible.
You should allow plenty of time to discuss your agreement with your lawyer before the marriage or before commencing a de facto relationship. This will allow you the time to take into account the considerations that are important to yourself and avoid overlooking any past, present or future assets or liabilities that are relevant to the agreement. Adequate preparation time and care in planning will help to ensure the agreement is binding and the terms are acceptable to both parties.
If you are entering into a de facto relationship it is important to remember that any Binding Financial Agreement you have made will be of no effect if you and your partner marry. It is important to obtain legal advice well in advance of the marriage.
The lawyers at Mathews Family Law & Mediation Specialists Melbourne understand the legal requirements for a Binding Financial Agreement to be valid and enforceable. We can help to ensure your rights and entitlements are fully considered and protected in the event of separation. For couples who have a substantial asset pool, such as a major property/share portfolio or a family business, we understand the commercial importance of ensuring these assets are protected and can help to ensure your rights and entitlements are protected.
Mathews Family Law is a leading family law firm in Australia. Please contact us on +61 3 9804 7991 to speak with a family lawyer from our law firm today. You can also send through your enquiry online now and we will contact you shortly.