Financial Agreements – The What, Who and When?

Over the coming weeks, our Director, William Sloan will be writing about Financial Agreements and giving you some information as to:

What is a Financial Agreement?
Who can make a Financial Agreement?
When can a Financial Agreement be made?
Examples of situations that might make it worthwhile considering a Financial Agreement.
What are the steps required to make a Financial Agreement.
What are the costs involved in making a Financial Agreement.
What are the potential costs that might arise if a Financial Agreement is not in place.
How do Financial Agreements interact with estate planning.
How do Australian Financial Agreements interact with foreign agreements.
How do Australian Financial Agreements interact with foreign assets.
Are Financial Agreements binding.
Further information.

In this article, we look at the basics of the What, Who and When?

What is a Financial Agreement?

A Financial Agreement is a written Agreement made between the parties to a marriage or de facto relationship, which deals with their financial rights in the event of a separation.

The financial rights dealt with in a Financial Agreement can be:

alteration of property interests;
spousal maintenance; or
both alteration of property interests and spousal maintenance.

There are certain matters which cannot be dealt with in a Financial Agreement, including:

parenting arrangements; and
child support.

If a separation occurred, then these matters would remain to be dealt with (even with a Financial Agreement in place).

Who can make a Financial Agreement?

A Financial Agreement can be made by:

parties who are intending to get married;
parties who are already married;
parties who are intending to commence living together in a de facto relationship;
parties who are already in a de facto relationship.

When can a Financial Agreement be made?

A Financial Agreement can be made:

before parties get married or begin living together in a de facto relationship; or
after parties have been married or begun living together win a de facto relationship.

If you are considering the preparation of a Financial Agreement, please contact our office on 6380 3900 or email kwclegal@kimwilson.com.au and we will be happy to assist you.

Our next article we will look at “Examples of situations that might make it worthwhile considering a Financial Agreement”.