Is a Financial Agreement binding?

Yes. A Financial Agreement is legally binding and enforceable only if it satisfies strict requirements under the Family Law Act. Unlike most contracts, these agreements "oust" the jurisdiction of the court, meaning they prevent a Judge from deciding how your assets and liabilities should be divided if you or your former partner decided to apply to the Court for property settlement.

Requirements for an Agreement to be Binding:

For a Financial Agreement to be considered legally binding, it must meet several mandatory criteria:

• Written and Signed: The agreement must be in writing and signed by both parties.

• Independent Legal Advice: Before signing, each person must receive independent legal advice from their own qualified Australian lawyer. You cannot use the same lawyer or firm.

• Lawyer’s Certificate: Each party's lawyer must provide a signed statement (certificate) confirming that they provided advice on how the agreement affects that person's rights and its advantages/disadvantages at the time.

• Full Disclosure: Both parties must disclosure of all their assets, liabilities, and financial resources. Both parties have the right to request and review documents from the other party and to obtain independent valuation reports. However, there is no legal requirement to exchange documents or obtain valuation reports. Don't be conned by an hourly rate lawyer who wants to clock up some hours doing this when it is not necessary.