Binding Financial Agreement under the De Facto Family Law Act
Co-habitation is a common practice among couples in Australia. While some couples may choose to get married, others decide to enter into a de facto relationship. Regardless of the type of relationship, couples should be aware of their legal rights and obligations in the event of a separation.
A binding financial agreement, also known as a prenuptial agreement, is a legal document that outlines how assets and liabilities will be divided in the event of a separation. Under the Family Law Act 1975, binding financial agreements for married couples must comply with specific requirements, and the same goes with de facto couples.
The De Facto Relationships Act 2008 introduced laws for de facto relationships in Australia, which includes the ability to enter into a binding financial agreement. A de facto relationship is defined as two people who live together on a genuine domestic basis, and who are not married to each other or related by family.
A binding financial agreement for de facto couples should specify how assets and liabilities will be divided in the event of a separation. This includes all assets and liabilities, such as property, superannuation, debts, and any other financial resources.
The agreement should be signed by both parties and should be witnessed by an independent party. Each party must also have independent legal advice before signing the agreement. This ensures that both parties understand the terms of the agreement and are not under duress or undue influence to sign it.
A binding financial agreement for de facto couples can be made at any time during the de facto relationship, including before, during, or after the relationship. If the relationship ends, the agreement will be used by the court to determine how assets and liabilities will be divided.
One important thing to note is that a binding financial agreement cannot override the laws of the Family Law Act. The Family Law Act provides that an agreement can be set aside by the court if it is found to be unjust or unfair. The court must consider the circumstances of both parties and determine whether the agreement was entered into freely and with a full understanding of its implications.
In conclusion, a binding financial agreement is an essential document for de facto couples who want to ensure that their assets and liabilities are divided fairly in the event of a separation. If you are in a de facto relationship, consider speaking with a family lawyer who can assist you in drafting a binding financial agreement that complies with the De Facto Family Law Act.