Financial Agreements: Are they binding?

On 8 November 2017 the High Court of Australia delivered a Decision in a case relating to Financial Agreements. Sometimes referred to as “Pre-Nuptial Agreements”, Financial Agreements allow parties (married or de facto) to agree in advance how their assets and other financial matters will be dealt with if separation occurs.

In this particular case, before marrying the parties had entered into a Financial Agreement and then after marrying they entered into a further Financial Agreement. By the time of the Court case the parties had separated. In the Court case one of the parties was saying that the Agreement should stand. The other party was seeking to have the Court set the Agreement aside. The High Court decided that it should be set aside.

The grounds for deciding to set aside the Agreement arose from the circumstances in which the Agreement was made. The High Court held that there had been unconscionable conduct in relation to the making of the Agreement.

Please click here to read the Court’s summary of the Decision.

E: william.sloan@kimwilson.com.au