Before De Facto Cohabitation
Changes to the Family Law Act has made it possible for defacto couples to make ‘Financial Agreements’ . This means that de facto couples can make the equivalent of a ‘prenuptial agreement’ before they commit to living together in a domestic situation and partnership.
Making a pre de facto agreement before you move in together gives you peace of mind that your assets are protected. It allows you to stipulate and quarantine particular assets or financial resources from claim should the relationship break down.
By “isolating” those assets, each party is able to leave the relationship, should the need arise, with the property they brought in. Putting your agreement in writing puts a stop to the niggling doubts and “what if?” questions.
This type of legal arrangement is quite common, it takes care of the practical matters and is generally no more difficult than a Will to draft.
Let’s 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 their finances before they have been together for a longer period.
What should they do?
Greg and Yana can enter into the next phase of their life together and still take care of the financial arrangements.
Essentially, both Greg and Yana make a declaration of the assets and liabilities they own before moving in together and include it in their Financial Agreement. They are each responsible for the debts they bring to the table and each can leave with the assets they they have brought into the partnership. If they choose, they can also make provision for separate or combined living expenses.
How to arrange a financial agreement
Traditionally, you would engage a lawyer to draft the agreement for you. This involves several meetings to determine what you want the agreement to achieve, and as lawyers charge by the hour, it is easy to see how the costs escalate quite rapidly.
Alternatively, you can start with a template kit and do more of the work yourself, saving you considerable time and money.
But remember, you will still need legal advice before you sign to ensure your agreement is binding.
What are the benefits of using a Kit vs a Lawyer?
When you visit a lawyer for the first time, you can expect a meeting to flesh out your needs. From that meeting, you’ll be required to provide certain information, for example:
- Who are the parties to the agreement? You will provide full names and dates of birth.
- When did you plan to start living together?
- Are there any children of the relationship (names and dates of birth)?
- Do you hold any controlling interest in a company trust or SMSF?
- List each party’s current assets and liabilities.
Once that information has been provided, a document will be prepared (generally from a template the firm has used previously), and another meeting will be scheduled to review the draft agreement.
You may need to provide additional info, and there may be several emails back and forth.
All the while, the meter is running at the hourly rate. The more meetings and emails, the higher the cost.
Once a document has been prepared, you will provide a copy to your partner, who must then seek his/her own legal advice.
It’s a time-consuming and costly process.
All that to-ing and fro-ing can be avoided if you use a template kit.
You will still need to provide all that information, but instead of paying a lawyer to enter the data into their template, you and your partner can enter the information straight into a template yourselves.
It’s easy to see how this can save you a bundle in legal fees!
There are 5 easy steps to putting a financial agreement in place before you start living together
- Download the Agreement Kit – just $147 to get started
- Fill in the Template (using the Users Guide and other resources)
- Submit your draft agreement to our team for assessment
- Get the Fixed Price Legal Advice – $3,250 covers both parties in most cases
- Sign your Agreement
All in all, you can complete your de facto financial agreement and have peace of mind about your future financial security for just $3,397 (unless you have very complicated financials)
A Certificate of Legal Advice is also required
Section 90UJ of the family law act requires both parties to obtain certification of independent legal advice from a legal practitioner.
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 Document Review Service page to learn more about this requirement and to find out how you can obtain your certificate of legal advice at a fraction of the normal solicitor costs.
Fixed Pricing – No Nasty Surprises
| Item | What’s Included | Fixed Price (inc GST) |
|---|---|---|
| De Facto Kit | Professionally drafted template, user guide, sample clauses, bonus will kit, members information portal, access to the draft assessment and Fixed Price Legal Advice | $147 |
| Legal Review Service for both parties | Fixed-fee legal advice from an independent solicitor for each party (required to make the agreement binding) | $3,397 |
| Total Cost for Two People | $3,397* | |
* Fixed pricing applies to 95% of customers.
If your situation involves complex structures (e.g. multiple companies, family trusts), we’ll assess your draft and let you know before proceeding if any extra fees would apply.
Easy to Use Kit available for immediate download
This pre de facto agreement kit has been professionally drafted to comply with section 90UB of the Family law Act and allows you to complete a pre defacto financial agreement with a minimum of fuss. It includes;
- The Defacto Agreement template (for either Western Australia or all Other States) – written in plain English
- A Comprehensive User’s Guide which answers your questions
- Sample agreement – so you know what the completed agreement should look like
- Sample clauses – help you to tailor the document to your own situation – just cut and paste!
- A Bonus Will kit because it’s always a good idea to update your will when your life circumstances change, such as separation or divorce, the birth of a child or entering into a new relationship.
- Access to the Exclusive Members area which takes you through the process step-by-step
- Complimentary Financial Agreement Assessment –we check your draft agreement to determine whether if is suitable for our Legal Review Service. This is how we save you thousands of dollars in legal fees.
- Access to fixed price Legal Advice (Legal Review Service $3,250 covers both parties in most cases) so you can get your agreement certified without spending a fortune.
Get Started Now – Before Cohabitation or Pre De facto Agreement Kit – Available for Immediate Download, Only $147
Buy De Facto Pre Cohabitation Financial Agreement 90UB (all states except WA) Buy De Facto Pre Cohabitation Financial Agreement WA 205ZN for Western Australia Already Living together? Get a Cohabitation AgreementA few sample pages of our Pre de facto Agreement
We’ve shown the agreement for all states except W.A. The grey boxes indicate form fields where you enter your personal information. Yellow highlights indicate areas where you will choose a clause that suits your situation.
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If for any reason you are not completely satisfied with your purchase or our service, please phone our office on 1800 608 088 within seven (7) days of purchase and we will rectify the situation, issue a refund, or offer a credit towards future purchases.
Australian Law
Our Financial Agreements are drafted to comply with Australian Law
Professionally Drafted
The agreements are professionally drafted by Australian Family Law Experts
Instant Download
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Easy to use
Plain English - No Legalese. Your Financial agreement is easy to use, edit and understand