Financial Agreement

What is a financial agreement?

A financial agreement, also known as a binding financial agreement, financial separation agreement or prenup contract, is a contract between two partners that sets out how assets, liabilities, and financial resources will be divided in case of a divorce or separation.

This is one of the most popular legal documents in Australia that couples use to agree on parenting, child support, spousal maintenance and division of property once the relationship ends.

Who should use this binding financial agreement template?

This professionally drafted and solid financial binding agreement can be suitable for:

• couples planning to marry who wish to establish a solid legal foundation for their future marriage;
• couples in de facto relations seeking a legal solution to legally separate their individual property;
• married couples searching for a solid document protecting their marital property in case of a divorce or separation;
• couples with kids looking for a binding agreement to set up clear rules regarding maintenance and child support;
• couples with kids from previous marriages willing to protect their jointly held property against third-party claims;
• married couples in the process of divorce or separation looking for a reliable template to divide their property and child support obligations.

What should be included in a financial binding agreement template?

A professionally drafted financial binding agreement should include:

Couple Details

The document should provide the full name, current residential address, date of birth, city of birth and current occupation of both parties. Both same-sex and different-sex couples can enter into binding financial agreements in Australia.

Type of Relationships

Depending on the parties’ personal circumstances and arrangements within a family, this document can be used for:

• Pre-marriage arrangements. Usually this type of document is being signed by parties planning to marry soon.
• Mid-marriage arrangements. In recent years mid-marriage financial agreements Australia have become quite popular, allowing couples to reconsider existing property and financial arrangements within their relationship.
• De facto arrangements. This document is commonly used as a de facto financial agreement template by couples who are not officially married or do not plan on getting married.

Spousal Maintenance

Where appropriate, a couple may also decide on the amount and frequency of spousal maintenance after divorce or separation in the text of the financial binding agreement template. In that case the following information should be included:

• the name of a party responsible for paying support;
• frequency of support payments (such as weekly, monthly or lump sum); and
• the amount of support payable in Australian dollars.

Children Support

If the couple has children together, whether biological, adopted or both, they may define the following information in the document:

• full names and dates of birth of all children
• parenting plan;
• living costs;
• parenting style and values;
• decision-making process related to important aspects of children’s lives (such as health, education, etc.).

In case either of the partners has children from previous marriages or relations, then information about those children should also be added. In addition, it is important to add an additional disclaimer stating that the other party to the contract shall not have any parental rights or responsibilities with regard to the children from previous marriages of each other.

Termination

This financial binding agreement template can be terminated by the mutual agreement of both parties.

Termination should take place by signing an additional agreement on termination. According to section 90J of the Family Act, this document does not end automatically upon the death of either party. In that case, the provisions of this agreement should be binding on the legal personal representative of the deceased person, such as the trust executor. This is particularly relevant in a situation where a couple has been deciding how their joint property should be managed after either party’s death.

Applicable Law

Parties have to select the law of a state or territory that should apply to this document. Usually this is a state or territory where a couple currently resides or plans to live together after getting married. Selection of a state law is quite important, as it subsequently defines which state laws will apply to the execution and interpretation of such an agreement. For example, a binding financial agreement template in QLD means that the laws of the state of Queensland apply to that document.

Attachments

Unlike a typical contract, a binding financial agreement template must include a number of important attachments separate in annexe, including:

• complete and accurate list of each party’s individual assets;
• complete and accurate list of the couple’s jointly held property, if applicable;
• a signed statement from each party’s legal practitioner confirming provision of independent legal advice prior to signing this agreement.

These annexes should be attached to the final document and kept by both parties for their internal record.

Checklist for Financial Agreement Template Australia

Upon filling in the questionnaire and customising your financial agreement template, there are a few important considerations parties have to keep in mind:

Read the Document

Each party must carefully read this financial agreement contract template to make sure the document reflects their arrangements properly and does not include mistakes. There is no need to hurry up so that you have as much time as you need.

Seek Legal Advice

All parties have to take prior legal advice from their trusted legal practitioner or lawyers regarding the legal consequences and implied advantages and disadvantages of signing this agreement. Taking legal advice is mandatory to ensure. A copy of a legal statement signed by each party’s legal practitioner should be attached to the text of this document.

Sign the Document

Once both parties are ready, they should date and sign this document in two separate copies, one copy for each party. The signatures should be put in the presence of at least one witness. Each witness should be at least 18 years old, of sound mind and cannot be the party to the agreement.

How to customise a financial binding agreement template with FasterDraft?

To get a fully customisable template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – financial binding agreement template PDF or Word.
4. Make a payment.

The document is ready for instant download immediately after the purchase.