Financial agreement & family law experts

A financial agreement is a legally binding document that outlines financial arrangements between parties in various domestic relationships or marriages in Australia. This agreement can be entered into before, during, or after a partnership, including marriages and de facto relationships. It covers matters such as property settlement and financial responsibilities in the event of separation or divorce.

Financial agreements must meet legal requirements to be binding. They should be in writing and signed by both parties, with each party having received independent legal advice before signing.

Both parties are required to provide full and frank disclosure of their financial circumstances when entering into a financial agreement to ensure transparency and fairness.

Once properly executed, a financial agreement becomes legally enforceable, providing a structured framework for financial matters in case a relationship ends.

Financial agreements can be useful in many marriages and de facto relationships, but they are not necessary for everyone. Some scenarios where a financial agreement could be beneficial include:

• If you are in a de facto relationship, a financial agreement can be useful to outline how financial matters will be handled in the event of a separation
• If you are already married, you may still consider a financial agreement to address financial aspects in case of a future separation
• If you have significant assets that you want to protect in the event of a relationship breakdown, a financial agreement can specify how these assets will be divided
• Individuals who own businesses may use financial agreements to safeguard their business interests and prevent disputes over business assets
• In cases where one or both parties have children from previous relationships, a financial agreement can help clarify financial responsibilities and asset distribution
• Life circumstances change, and a financial agreement can provide clarity on how financial matters will be handled if there are significant changes such as career advancements, inheritances, or financial windfalls
• Financial agreements can help prevent disputes by clearly outlining the agreed-upon financial arrangements, potentially reducing legal conflicts

Generally, a financial agreement becomes legally binding when:

• The agreement is in writing and has been willingly signed by both parties 
• Each partner has received independent legal advice that outlined the effect of the agreement and the advantages/disadvantages of entering into it
• Each partner has received a signed certificate from their lawyer confirming that they provided legal advice
• The court has not set the agreement aside (this could happen if, for example, they deemed the agreement not just or equitable)

A consent order is a court-approved agreement, while a financial agreement is a private contract between parties. Consent orders have the advantage of court enforcement, but they involve court proceedings. A financial agreement offers more privacy but relies on the willingness of parties to comply without direct court oversight.

If you are entering into a binding financial agreement, then it is mandatory to seek independent legal advice before you can progress with the agreement.

A financial agreement can address all aspects of your financial circumstances or just specifics, such as spousal or de facto partner maintenance or property settlement.