Financial Agreements can apply to both de facto relationships and marriages, and can be completed before the marriage/relationship. These are often referred to as “pre-nups”.
The pre-nuptial type of Financial Agreements are fraught with many potential difficulties. Many couples believe that such an agreement can simply say “I keep what I have”, “S/he keeps what s/he has” and “We split the rest”. Unfortunately, it is nowhere near as simple as this, as a Financial Agreement must be drafted in a very precise manner. If the Financial Agreement fails to be sufficiently precise, it is prone to being set aside by a court in the event of a dispute following the breakdown of the marriage/relationship. There are also many other considerations to take into account such as, what happens if you sell what you have to help buy a new asset but s/he keeps what she has in the meantime, what happens if either of you suffer a serious injury or illness, what happens if you have 4 children and one of you has to stay at home to care for them?
The potential list of questions is endless, and what you might consider is very straightforward is anything but straightforward.
- What does a lawyer need to do on a Binding Financial Agreement?
- When does a Binding Financial Agreement take effect?
- Agreements – Do you need a different lawyer to your spouse?
- What do I need to know about creating enforceable agreements?
- Are homemaker and parental duties considered as non-financial contributions?
- I think my Separation will be complicated