Asset Protection
Financial Agreements, referred to internationally and more commonly as ‘pre-nups’, are a way to determine the division of assets in the event of separation, divorce, or death.
By entering into a Financial Agreement parties agree to ‘contract’ out of the jurisdiction of the Court in the event of a separation.
If you are contemplating living with a partner, are planning on getting married, or are in a de facto relationship then you may wish to get some tailored legal advice as to whether entering into a Financial Agreement with your partner would be beneficial to you.
There are many reasons why people chose to enter into Financial Agreements with their current partners including:
you may have substantial assets that you wish to safeguard in the event of a separation;
you may have been through a family law separation before and wish to avoid the stress, costs and time delays associated with protracted negotiations or litigation;
Your family may have gifted you substantial money or assets and have expressed concerns about the preservation of these assets in the event of a separation;
You may own property with a third party who is concerned as to what may happen to your interest in the property in the event of a separation;
You and your partner may wish to ‘argument proof’ the future so that any potential separation will not necessitate the need for any conflict or stress that may arise when negotiating a property settlement;
You may wish to ensure that particular assets revert to your estate (to be left to children or any other third party you wish) and not your partner or spouse in the event of your death and agreement that you and your partner are restrained from making any Part IV claims against the other’s deceased estate.
Although it may seem ‘unromantic’ to have discussions with your partner that involve contemplating a separation, entering into a Financial Agreement while you are on good terms can potentially save you a lot of money and stress in the future.