PLEASE NOTE! Agreements become legally binding only when each party has received Certified Independent Legal Advice
Before De Facto Cohabitation.Under the amended Family Law Act people in de facto and same sex relationships are now able to make 'Financial Agreements'. This means de facto couples can make the equivalent of a 'prenuptial agreement or prenup' before they commit to living together in a domestic partnership.
Making a financial agreement (FA) before you move in together allows you to stipulate and protect particular assets or financial resources from claim by your future partner in the unfortunate event of a relationship breakdown. As an example a couple who are intending to move in together can make a pre defacto Financial Agreement which deals with the assets and financial resources owned by one or both of them before cohabitation. By “isolating” those assets in the event of separation each party is able to leave the relationship, should the need arise, with the property they bought in, making defacto property settlement easier. This type of legal arrangement is quite common and generally no more difficult than a will to draft. Lets look at an example. Greg and Yana are a professional couple each of them recovering from a previous marriage split. Although they both feel their new relationship will be strong and withstand the test of time they are nervous about combining all of there finances before they have been together for a longer period. What should they do? Greg and Yana can have their cake and eat it too by making a financial agreement. Essentially each party makes a declaration of the assets and liabilities they each own before cohabitation and they include a statement to that effect in their FA. Each party is responsible for the debts they bring to the table and each can leave with the assets they bought in. If they choose to make provision for separate or combined living expenses they can do that also. Section 90G of the family law act requires both parties to obtain independent legal advice from a legal practitioner including the advantages and disadvantages to the party of making the agreement. Once the advice is given, the solicitor for each party will attach a Certificate confirming that advice was given prior to the parties signing the Agreement. This prevents either party from arguing that, at the time of making the agreement, they were unaware of the ramifications of signing the agreement. Make sure you visit our Agreement Review page for the added security and guidance of good legal advice. Pre Defacto Agreement kit with easy to follow instructions. Download now. Only $129.95 click here. This Pre de facto financial agreement kit has been professionally drafted to comply with section 90UB of the Family law Act. The kit includes |
De facto is a Latin expression that means "concerning fact". In terms of a relationship when it is PRE defacto it means that a couple are intending to live together but are not married. It will often appear as 'pre defacto' or 'pre de facto' and there is no difference between the two.
The agreement that covers this used to come under the heading of a 'binding financial agreement' until changes to the Family Law Act meant it is now just a 'financial agreement', under sction 90UB of the act. This change to the act also saw these agreements now come under federal law and now recognise same sex couples as having the same rights as heterosexual couples.