Protecting assets and relationship agreements

You may have heard of a pre-nuptial agreement before, you may want one for a de facto relationship, but what are they? We are frequently receiving enquires about protecting assets in the event of a relationship breakdown.

Let’s go through a few of the basics around Financial Agreements.

Financial Agreements can go by many names. Sometimes called “Binding Financial Agreements” or “BFA’s”, they’ve also been referred to as cohabitation agreements, pre-nuptial agreements and separation agreements.

What is a Financial Agreement?

A Financial Agreement is a contract.

It sets out what happens in terms of property division in the event that the relationship ends and you separate.

Once the contract is drawn up, it is signed by both parties after they have each received independent legal advice. They are not lodged in court or approved by any third party. They are pursuant to the Family Law Act 1975, however contract law also applies to them as well.

What types of Agreements are there?

Financial Agreements can go by many names. Sometimes called “Binding Financial Agreements” or “BFA’s”, they’ve also been referred to as cohabitation agreements, pre-nuptial agreements and separation agreements.

A couple can enter into an Agreement whether de facto or married, they are available before a couple moves in together, after they start living together and after they separate. You can enter into an Agreement before marriage, during marriage or after marriage.

These are all Financial Agreements. They may be referred to by different names depending on when you enter into the agreement (for example, a Cohabitation Agreement could be for a de facto couples, a pre-nuptial agreement is in contemplation of marriage), but they all Financial Agreements.

Can I protect future assets?

You can use the Agreement to set out that you and your partner will keep certain assets you came into the relationship with (sometimes referred to as being able to “quarantine” an asset).

The Agreement can also provide that you will each retain certain assets you may acquire in future, including inheritances.

You can also use them to set out how to divide any assets you buy together during the relationship.

Is a Financial Agreement binding?

Done properly, they can be upheld and enforced in Court.

Need an agreement? or want to know more?

If you have more questions, or think you would like to proceed with an Agreement with your partner, please contact us for a free telephone call or to book an Initial Consultation with us.