03 Aug Financial Agreements and Asset Protection: What Every Couple Should Know
Whether you are entering a new relationship, living together, getting married, or separating, a Financial Agreement can provide valuable protection and certainty.
What Is a Financial Agreement?
A Financial Agreement is a private agreement between parties that allows them to determine how property, financial resources, and maintenance will be dealt with if their relationship breaks down.
Depending on the circumstances, agreements can be entered into:
- Before marriage;
- During a marriage;
- After separation or divorce;
- Before a de facto relationship;
- During a de facto relationship; or
- After the breakdown of a de facto relationship.
Why Consider a Financial Agreement?
A properly drafted agreement can:
- Protect pre-existing assets;
- Preserve family wealth;
- Protect business interests;
- Clarify financial expectations;
- Reduce the likelihood of future disputes; and
- Potentially avoid costly litigation.
What About Superannuation?
Many people are surprised to learn that superannuation requires special treatment within a Financial Agreement.
Where superannuation splitting arrangements are included, they must comply with specific legislative requirements and procedures.
Keeping Agreements Up to Date
Life changes, and financial circumstances evolve. A Financial Agreement should be reviewed if there is:
- A marriage following a de facto relationship;
- The birth or adoption of children;
- Significant asset acquisitions;
- Major inheritances;
- Business restructuring; or
- Relocation overseas.
Regular reviews help ensure the agreement remains effective and relevant.
Conclusion
Financial Agreements are not just for the wealthy. They are a practical planning tool that can provide clarity, certainty, and protection for couples at all stages of a relationship.
If you would like advice about whether a Financial Agreement is right for you, contact the Family Law team at Solari & Stock to discuss your options. Speak with a member of our experienced Family Law Team on 8525 2700, or click here to request an appointment.
Article by Shweta Kumar
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For more information on Financial Agreements please refer to our articles on this topic below: