You maybe planning a wedding soon or are presently in a relationship and it’s time for you to speak about your monetary concern with your partner. You may have certain expectations and if anything goes wrong in the future you would need to be protected. The question you ask yourself is whether you may need a binding monetary agreement?
What is a Binding Financial Agreement?
It is usually often called a pre-nup agreement, prenuptial agreement or a monetary agreement. By means of one it may also encourage a harmonious relationship in a marriage and minimize contradiction if it turns out a marriage isn’t going to last.
As reports have indicated almost a third of marriages result in separation and there is a tendency on the way to people marrying at older ages. In 1971 the average age involved 24 whereas now the figure could well be somewhere in early 30′s.
Since individuals are marrying more mature and getting into marriages with increased greater properties and assets and a larger net worth, it’s not at all unanticipated that with high divorce rates, people (and their families) want to safeguard their resources.
‘Pre nuptial’ Agreements have been around for a while, nevertheless it really was not until 27 December 2000 these particular agreements were ‘binding’ within the Family Law Act.
The Binding Financial Agreement can take care of two main areas: property and preservation. It can point out the properties and assets or financial resources, both parties bring to the marriage and get during the marriage and if the marriage fails where to be divided. These agreements can also cope with preservation of the parties during the marriage and after the marriage.
What Are The advantages Binding Financial Agreements?
The advantages of a Binding Financial Agreement are two fold. Firstly, it gives both parties more control over their property and greater choice about their own money situation. Secondly, such an agreement reduces conflict and the possibilities of a law suit if perhaps the marriage stops working.
If you are looking at marriage and either you or your likely spouse holds substantial assets (or considerable debts), or if you find a significant disparity in wealth, then a binding monetary agreement is one thing you should look into. It may be the case that, by getting into a Binding Financial Agreement, you will likely be allaying the concerns of the in-laws, or your family, in respect of protecting pre-existing properties and assets and wealth.
But you can find pitfalls in having this Agreement. The Family Law Act won’t give any kind of Court approval or acceptance or ratification. A number of money agreements have been voided or put aside on ‘technicalities’.
It’s not enough that an agreement outlines the agreement involving two parties to a marriage or proposed marriage, and is agreed upon by the parties after having received independent legal counsel. These agreements must strictly comply with current legislative requirements, otherwise the agreement will likely be non-binding and unenforceable, and the charge and the undertaking concerned in the preparation of the agreement will be for nothing.
Therefore it’s imperative that whoever drafts your binding financial agreement or endorses you of your rights under a proposed binding financial agreement is capable and familiar with Family Law and Binding Financial Agreements.
It’s crucial that the Solicitor who drafts your Financial Agreement, will give you separate legal advice on the binding financial agreement, are professional and competent in Family Law and Binding Financial Agreements, and are current with the Family Law legislation.
Whilst binding financial agreements might be binding, there are instances when a Court may reserved a money agreement. These circumstances include fraud, unconscionability, or if there’s been a material alteration of occasions and thus of the change a party to the agreement will suffer problems if a Court won’t put aside the agreement.
Whilst you can find parties who are in opposition to ‘pre nups’ and say that such agreements are based on the concepts of affection and trust in between parties getting in a marriage, the functional benefits of binding financial agreements help to enhance a happy relationship reducing the possibilities of dispute and litigation in the future.
It’s imperative to search for a qualified lawyer to help you to draft your binding financial agreement and if you are wanting to find an experienced team to achieve this for you, visit our website at Binding Financial Agreement to know more.