This will save you time and money if you reach an agreement without going to court. You also know exactly what each of you will receive, whereas if you go to court, you are waiting for a judicial officer who decides for you. In addition, lengthy court proceedings can increase stress and increase the pressure you and your family are under. Couples often think that once they have been in a relationship for two years, they are in a “de facto” relationship. However, common-law relationships have a specific definition under the Family Law Act of 1975 (Cth) (Act), and it is not always as simple as a two-year anniversary. Below we reflect on how this definition can apply to you and your partner and what it means when it comes to drafting a binding financial agreement. There are certain formal requirements that need to be met. To be binding, a financial agreement must be written and signed by both parties. Each party must obtain independent legal advice and lawyers advising the parties must sign statements to say that they have given independent advice. Many relationships have many or all of the elements mentioned above, you may be in a de facto relationship and not even realize it. If a financial agreement is reached without careful consideration, circumstances that have not been anticipated and which make the terms of the agreement unfair may arise. In addition, the Tribunal has taken a very strict approach to determining whether a binding financial agreement complies with the requirements of the legislation and, therefore, it is difficult to give assurance that an agreement will withstand the Tribunal`s control. Commonly referred to as a “pre-marital agreement,” a financial agreement is used to protect assets held by one of the parties who are thinking about marriage…

For a financial agreement to be binding, it must respect the same contractual principles and Articles 90KA and 90UN of the law. In addition, it must comply with paragraphs 90G and/or section 90UJ of the Act, which stipulate that there are additional requirements if you are in a de facto report in force before the court to obtain an injunction or transaction on the maintenance and allocation of assets. To discuss with an experienced lawyer in Brisbane the development of a de facto legally binding matrimonial or financial agreement, call (07) 3231 2444. For more information on financial agreements and the cost of developing a financial agreement, please see the links below. The decision on the application of the agreement must be carefully considered. The couple needs to think about how they plan to organize their finances during their relationship. You also need to think about all the things that might happen in the future, whether expected or unexpected, such as the birth of children, loss of employment, illness or disability, inheritance, etc. Financial arrangements can be made at different times in a relationship or marriage. Part VIII A of the Family Act 1975 (“Law”) provides for financial arrangements with married persons: it is important to consider a binding financial agreement if: a BFA can be a very complex legal document because of the strict legal requirements that must be respected to make it a legally binding instrument. This means that it is important to get legal advice on the best way forward for the draft agreement.