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A financial agreement is a contract entered into between both parties either prior or after the wedding date that addresses a range of issues outlined in the Family Law Act 1975. Cohabitation agreements or de facto agreements are also recognised in Australia that confirms the parties' non-financial and financial rights when the de facto relationship comes to an end. Essential points that would regard as binding by a court 1. The agreement must be completed by both parties in direct anticipation of their forthcoming marriage. 2. It must also set out the fact that it is intended to cover a situation that would arise in the event of a breakdown in the marriage. 3. It must be clear from the agreement that both parties have made full financial disclosure to the other. 4. It must be clear from the agreement that both sides have been independently legally advised and it should be stated specifically in it that this legal advice has taken place and that the itt is intended to be legally binding. 5. The division of assets referred to in the agreement must be reasonable in the circumstances and should be subject to review the event of major changes in circumstances. Full and Frank disclosure of all assets In order to ensure the validity both parties must make a full and frank disclosure of all assets, liabilities, income and resources. If this is not the case then the court can choose to set aside any agreement and make alternate orders. Can a financial agreement be set aside? It can be set aside, or terminated if the court is satisfied that: •It was obtained by fraud, such as the non-disclosure of a material matter • It is void, voidable or unenforceable. • A change in circumstance has occurred in the relationship which would make the agreement, or part of the it, impractical. Conditions of binding In order to be binding: • The agreement must be signed by all parties • All parties were informed of the effect of it on their rights, as well as the advantages and disadvantages of the agreement. Binding financial Agreement provided by family law act 1975 • They are written agreements between spouses entered into in contemplation of the parties entering into a marriage, during a marriage or after a marriage. Comparatively, it is one made in contemplation of parties entering into a de-facto relationship, during a de-facto relationship or after a de-facto relationship. • Essentially, it is an agreement made with respect to the distribution of property, financial resources, spousal maintenance and any incidental or ancillary matters such as protection of r estate upon one’s death. What issues can be dealt with 1. The parties can make arrangements for all or any of the property or financial resources of either or both of the parties. This includes separate and joint property. 2. The parties can make arrangements for the maintenance of either party. Contents • Binding agreement • Essentials regarded by court • Conditions of binding • Issues to be dealt in binding • Seting aside binding agreement
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