When entering into a relationship or marriage it can be a time when you feel vulnerable about your financial future, particularly if you have worked hard during your lifetime to accumulate assets. If you are entering into a de facto relationship or marriage, and have assets, you might wish to consider entering into a formal agreement with your partner that provides clear guidance on how the financial matters between you will be resolved in the event of a separation.
You may find the idea of entering into a formal agreement about what happens if you separate from your partner daunting and uncomfortable. However, entering into a formal agreement is not about dooming the success of your relationship, it is about protecting your financial future. To alleviate the discomfort and sensitivity of entering into a formal agreement, it is important for you to have an open and honest discussion with your partner about your wish to protect your assets; after all, your partner may also want to protect their assets.
A formal agreement is commonly referred to as a “binding financial agreement” or “Pre-Nuptial Agreement”. A binding financial agreement can be entered into prior to or during a de facto relationship, same-sex relationship or marriage.
The types of issues that can be covered by a binding financial agreement include:
What happens to the assets held by you at the time you entered the relationship or marriage?
What happens to the assets you acquire in your name during the relationship or marriage?
What happens to the assets you acquire together during the relationship?
How the assets purchased by one of the parties be paid during the relationship or marriage?
How the assets purchased together will be paid during the relationship or marriage?
Will spousal maintenance be paid to one of the parties in the event of a separation?
A binding financial agreement is a very serious legal document and requires the care, consideration and expertise of an experienced family lawyer to draft the binding financial agreement to ensure that it will actually protect your assets in the event of a separation. The msl family law team has been involved in the drafting and negotiation of various types of binding financial agreements. The expertise that msl can provide to you if you are considering entering into a binding financial agreement is invaluable, particularly when you want to secure your financial future.
