These agreements are usually entered into by people before they go into a new relationship.
They aim to protect parties’ existing assets in the event of a relationship breakdown.
They also determine what happens to assets of the relationship that are jointly purchased.
The Family Law Act states that you can contract out of its provisions by entering into a binding financial agreement.
A binding financial agreement can be made at the start of a relationship, during a relationship or after a relationship ends.
Providing for what will happen in the event of a relationship breakdown allows peace of mind especially when parties are in new relationships and have children from a previous relationship.
Although these agreements can be uncomfortable to discuss, they make financial sense in the event of the relationship breaking down.
There are circumstances in which these agreements can be set aside but if they are correctly drawn up this is the exception rather than the rule.
It is important to seek legal advice in order to ensure that a proposed financial agreement is valid and binding on the parties.
If you are considering a prenuptial agreement you should certainly seek legal advice as to whether it suits your circumstances.
We have vast experience in drafting these financial agreements for our clients.
We also provide advice to clients on agreements drafted by their partner’s solicitors.