A financial agreement is a legally binding contract that sets out how a couple’s property, financial resources and maintenance arrangements will be managed if they separate, rather than relying on the process in the Family Law Act.
These agreements can be made before, during, or after a marriage or de facto relationship, and are often referred to as “prenuptial” agreements when entered into beforehand.
Financial agreements can be used to:
- protect assets acquired before the relationship, as well as wealth accumulated during it;
- safeguard financial contributions from family members (such as gifts, inheritances, loans or trust distributions);
- avoid the cost and stress of disputes, negotiations, or litigation after separation; and
- access rollover relief provisions (in certain circumstances) to reduce tax liabilities.
Drafting a binding financial agreement is complex and requires careful consideration of both current and future circumstances—such as children, changes in employment, illness, or inheritances. The agreement must be in writing, signed by both parties, and each must obtain independent legal advice. Full financial disclosure and genuine, good faith negotiations are essential, and sufficient time should be allowed for each party to consider, negotiate, and receive advice.
Our experienced Family Law team can guide you through this process to ensure your agreement is tailored, compliant, and provides the clarity and protection you need for the future.
