A prenuptial agreement is just one of many types of ‘financial agreements’ (or ‘binding financial agreements) couples may enter either before, during or after their relationship.
Financial agreements typically set out the way property or financial resources, including any superannuation interest, is to be dealt with following a relationship breakdown, but may also include any other matters relating to the division of property during or after a relationship.
Financial agreements may also be referred to as pre/post-nuptial agreements, cohabitation agreements, separation agreements or divorce agreements.
People usually enter financial agreements with their partner in an attempt to avoid the complicated, and often distressing, situations that can arise when dividing property after a separation. However, it is important to remember that these agreements are not always binding.
Who can enter a financial agreement?
- De facto couples
- Cohabiting couples or couples intending to cohabit
- Married couples or couples intending to marry
- Separated de facto couples
- Divorced couples
You cannot enter financial agreements if you are already engaged in one with another person, or if you do not ordinarily live or reside in Australia.
Are financial agreements valid in Australia?
Whether a financial agreement is binding is ultimately the decision of the court. Various factors will be considered including the nature and length of the relationship, and whether each party obtained legal advice from a solicitor regarding the effect of the agreement, prior to its formation.
Financial agreements are a particularly complex area of family law. It is best to seek professional advice tailed to your individual circumstances before pursing such an endeavour.
If you would like to know more about financial agreements or have any questions, please contact The Quinn Group on (02) 9223 9166 or submit an online enquiry.