Some people upon entering a relationship, have the foresight to enter into an agreement which determines how the parties assets and liabilities will be divided should they separate in the future.
Whilst many people may see this as believing the worst will happen, such an agreement, if drafted correctly, can assist tremendously with the division of assets and liabilities should the parties separate.
For married couples, this agreement is known as a Binding Financial Agreement and though usually entered into at the commencement of a relationship, it can be agreed to at any stage throughout the relationship, even after the relationship has ended. Some different considerations apply depending on when the agreement is made.
For de facto couples, this Agreement is known as either a Cohabitation Agreement (if drafted when the parties start living together or at some stage during their relationship), or a Separation Agreement/Recognised Separation Agreement (if drafted on separation).
There are a number of legal requirements for the drafting of these agreements, and if any of the legal requirements are not met then the agreements themselves are not binding.
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“For married couples, this Agreement is known as a Binding Financial Agreement and though usually entered into at the commencement of a relationship, it can be agreed to at any stage throughout the relationship, even after
the relationship has ended.”
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