What Is a De Facto or Marital Financial Separation Agreement?
A financial separation agreement (also known as a marital separation agreement or separation financial agreement or de facto financial separation agreement) is a legal document that outlines how married or de facto couples divide their assets, debts, and responsibilities after separation. In Australia, these agreements are often used to formalise property and financial arrangements without going to court.
Separating from a long-term partner whether you are married or in a de facto relationship can be an emotionally draining and a financially devastating time. Often coming at the end of a long and difficult process, the decision to leave is not usually an easy one, especially if children are involved.
Married couples who no longer wish to live together as husband and wife, but who are not divorced, are classed as being separated as are ‘de facto’ couples who no longer live together.
Click here for Separation Agreements for Married Couples Click here for Separation Agreements for De Facto CouplesThe Family Law Act 1975 Sect 49 defines separation as
(1) The parties to a marriage may be held to have separated notwithstanding that the cohabitation was brought to an end by the action or conduct of one only of the parties.
(2) The parties to a marriage may be held to have separated and to have lived separately and apart notwithstanding that they have continued to reside in the same residence or that either party has rendered some household services to the other.”
Usually the couple who has separated will live in separate dwellings although as the Act states it is not always necessary to live separately to be classed as separated. The parties may be separated although living under the one roof.
Marriage is a contract under law, binding the couple to various rights and obligations pertaining to property, children and maintenance of the partners. When a marriage breaks down and the partners separate (or divorce) then provisions for these marital obligations must be put in place.
But it’s not just married couples. The Family Law Act also gives de facto couples (inc same sex couples) the same access to the law as married couples, meaning that either de facto party has the right to ask the court for the division of property in a relationship breakdown
Part of the marriage separation process may involve a separation agreement. Separation Property settlements may be resolved by entering into a financial agreement or an agreement with ‘consent orders’ being made by a family law court.
A settlement of property can be finalised at any time after separation and before either spouse applies for divorce. However, a court application for settlement of property or spousal maintenance must be filed within 12 months of the divorce, or you will need the court’s permission to apply out of time.
A consent order is a written agreement that is approved by a court. A consent order can cover parenting arrangements for children (a ‘parenting order’) as well as financial arrangements such as property and spousal maintenance, no matter whether the couple are married or de facto.
The difference between a Financial Agreement (FA) and Consent Orders dealing with division of property or parenting arrangements is that the FA does not need to be lodged with the Court for approval, and is not subject to review by the Court.
Whilst parties have to wait 12 months from the time that they separate until they can apply for their divorce, they can resolve property matters between themselves by making a FA under section 90C or 90UD of the Family Law Act.
The parties may elect to enter into a Financial Agreement in preference to Consent Orders where they require certainty of outcome, rather than having the court impose its view of how assets are to be divided.
A financial separation agreement made under section 90C or 90UD allows the partners to decide for themselves how to manage these obligations without the need for entering court proceedings, reducing stress and the risk of extended litigation.
Reaching an amicable separation agreement quickly about debts, assets and property offers many advantages;
Separation Agreements for either Married or De facto couples are available for immediate download . We’ve drafted these comprehensive Separation Agreement Kits to comply with sections 90C and 90UD of the Family Law Act 1975 providing the legal framework for a compliant separation contract that will save you hundreds and possibly thousands of dollars.
Our kits are more than just templates. They’re carefully drafted by Australian lawyers to help couples finalise their financial separation without unnecessary stress or legal fees.
Whether you’re married or in a de facto relationship, the separation agreement kit gives you the tools to:
Click Here for more about Separation Agreements for Married Couples
Click Here for more about Separation Agreements for de facto couples
What is a financial separation agreement?
A financial separation agreement is a written document that outlines how you and your former partner agree to divide your assets, debts, and finances after separation. It is legally binding as long as it meets the requirements under the Family Law Act 1975.
Is this the same as a marital separation agreement?
Yes. A marital separation agreement is simply a financial separation agreement used by a married couple. It serves the same purpose – helping you document how you’ll handle financial matters after separation.
How does this agreement become legally binding?
Each person must receive independent legal advice before signing. This is required under Australian law. Our kit provides guidance to help you complete this step at a low fixed price so you can finalise your agreement correctly.
Do I need to go to court to use this agreement?
No. One of the key advantages of a financial separation agreement is that it helps you avoid court. If it’s properly prepared and signed after legal advice, it stands as a legally enforceable agreement.
What do I get when I download the agreement kit?
You’ll receive a professionally drafted legal agreement, step-by-step instructions, and guidance on getting legal advice. We also offer an optional fixed-fee legal review service with family lawyers who know our documents inside and out.
Our Financial Agreements are drafted to comply with Australian Law
The agreements are professionally drafted by Australian Family Law Experts
No Need to Wait. Download the Agreements Instantly
Plain English - No Legalese. Your Financial agreement is easy to use, edit and understand