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.
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.
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.
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.
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:
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!
All in all, you can complete your de facto financial agreement and have peace of mind about your future financial security for just $ (unless you have very complicated financials)
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.
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;
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.
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.
Our Financial Agreements are drafted to comply with Australian Law
The agreements are professionally drafted by Australian Family Law Experts
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Plain English - No Legalese. Your Financial agreement is easy to use, edit and understand