Binding financial agreements or prenuptial agreements as they are known overseas, are an option for people entering relationships who wish to protect their assets. The law in this area is complex, and legal advice should always be sought before signing any agreement. http://www.abclegal.com.au
Legal Advice Needed to Understand Binding Financial Agreements
1. Legal Advice Needed to Understand Binding Financial Agreements
When a relationship breaks up there are obviously a number of issues that must be
confronted, usually when the parties are in an extremely emotional state. This volatile
environment is even more difficult when there are children involved. One of the issues that
cause the most conflict is potential distribution of the shared finances, and couples
frequently turn to the legal system to help them reach agreement when they are unable to
do it themselves. One way to prevent this situation for people in Australia who have
substantial assets is to enter into binding financial agreements prior to their marriage, or as
they are commonly known in celebrity circles overseas, prenuptial agreements.
Valid binding financial agreements can oust the jurisdiction of the courts, but they have their
limitations. Family law Brisbane advice is that while they can deal with the division of
property and finances, and cover maintenance issues, they cannot do the same regarding
parenting issues.
There are a number of provisions that must be met for an agreement to be recognised by
the Australian legal system. The first requirement is that the agreement must be in writing
and signed by all parties. Before signing, all parties must have independent legal advice
from a legal practitioner, explaining how the agreement will affect their rights, and the
advantages and disadvantages of entering into the agreement.
A statement from the legal practitioner who provided the advice must be attached to the
signed agreement. Once made, the agreement must not be terminated or set aside, and all
parties must have a copy of the agreement. This does not mean that the agreement as set
is irrevocable, since circumstances can change. However, if changes are made, all the
original conditions must be adhered to for the amended agreement.
Parties considering signing binding financial agreements should also be aware that they can
be set aside by an order under certain circumstances. Most of those circumstances relate to
fraudulent or unfair treatment of a creditor, or unconscionable conduct by one of the parties
to the agreement. However, they can also be set aside if changing circumstances makes the
agreement impractical, if the change would cause hardship to a child or other party, or if
superannuation is involved. If the court sets aside an agreement, it can order the transfer of
property in a manner which it considers fair.
Binding financial agreements cover many aspects that come out of a relationship which are
subject to family and property law. Because of the complexity of these laws, a visit to
family lawyers Brisbane is essential before considering such an agreement.
No-one who enters a romantic relationship expects it to end in bitterness and regret.
Unfortunately the future is not there for us to see, so in cases where the worst happens, the
legal system is there to protect all parties.
