The financial agreement under section 90C of the Family Law Act 1975 is a legally binding document that sets out the financial arrangements between couples in the event of separation or divorce. The agreement can be made before, during or after the marriage or de facto relationship.
A financial agreement can cover a range of issues related to property, assets, liabilities, spousal maintenance and child support. It provides a level of certainty and security for both parties by outlining how assets and property will be divided if the relationship ends.
One of the main benefits of a financial agreement is that it allows couples to determine their own financial arrangements, rather than relying on the court to make decisions on their behalf. This can lead to a quicker resolution of the matter and can also be more cost-effective than going to court.
However, it should be noted that not all financial agreements under section 90C are enforceable. To be legally binding, the agreement must be signed by both parties and each party must have received independent legal advice before signing. It is also important that each party fully discloses their financial situation to the other party before the agreement is signed.
If a financial agreement does not meet the legal requirements, it may be set aside by the court. It is therefore crucial to seek legal advice when drafting and signing a financial agreement under section 90C.
It is important to note that a financial agreement is not suitable for everyone. It may not be appropriate for couples with significant changes in financial circumstances, such as the birth of children, purchasing of new property or changes in income. In such cases, it may be necessary to review or update the financial agreement to reflect the changes.
In summary, a financial agreement under section 90C of the Family Law Act 1975 can provide a level of certainty and security for couples in the event of separation or divorce. However, it is important to seek legal advice and ensure that the agreement meets the legal requirements for it to be enforceable.