When it comes to personal relationships, no one enters them expecting things to go wrong. But as life unfolds, it’s important to prepare for unexpected turns, especially when financial matters are involved.
Whether you’re entering a marriage, in a long-term de facto relationship, or separating, a financial agreement can be a practical tool to help secure your future. At MBA Lawyers, Aleena Mills works with clients to ensure their rights are protected and financial outcomes are clear.
What Is a Financial Agreement?
Under the Family Law Act, a financial agreement can be made at various stages of a relationship—before cohabitation, during a relationship, or after separation. In Australia, the equivalent of a prenuptial agreement (or “prenup”) is a financial agreement made before marriage or living together.
As Aleena Mills from MBA Lawyers explains, “We love each other now, we’re happy now, but to avoid all the drama of a contested trial or litigation and the cost of that down the track, we’re going to predetermine now how we’re going to divide things.”
These agreements can outline who owns what, how assets will be divided if the relationship ends, and even waive future spousal maintenance claims.
Why Consider One?
A well-prepared financial agreement can help avoid legal disputes, reduce stress, and save both parties significant costs in the event of separation. Instead of spending tens of thousands of dollars on litigation, couples can spend a fraction on drafting an agreement, typically between $5,000 and $6,000, and have peace of mind.
Aleena notes, “It’s like an insurance policy on your relationship. A little unromantic, but it gives parties a sense of stability and assurance.”
These agreements can also help ensure that intentions around property ownership, support, and estate claims are recorded, even if not legally enforceable in some situations (such as in estate matters under Queensland’s Succession Act).
Understanding the Risks
Although helpful, financial agreements are not foolproof. Aleena cautions that courts can set them aside under certain conditions, like if there was duress, non-disclosure, or if the agreement is deemed unconscionable. Transparency and fairness are essential. In Aleena’s words: “It’s really important to be transparent and honest in those agreements, especially about the value of things and the extent of your assets.”
This is especially important for couples with significant financial imbalances or those entering a second marriage with existing assets and children from previous relationships.
Tailoring the Agreement to Your Situation
Younger couples thinking of having children should approach prenuptial agreements cautiously. As Aleena shares, standard agreements may not take into account non-financial contributions like parenting or homemaking, potentially disadvantaging the lower-income-earning partner. In contrast, older couples may benefit significantly from a financial agreement that simply separates “what’s mine is mine, and what’s yours is yours”.
For those navigating separation or divorce, financial agreements provide a clear framework to finalise asset division without needing to go through court proceedings. They also allow couples to work privately and flexibly without judicial oversight, though this comes with its own considerations.
The Role of Expert Legal Support
At MBA Lawyers, a leading name among law firms on the Gold Coast, Australia, and recognised among top law firms in Brisbane, the family law team helps clients carefully draft and review financial agreements. We ensure the agreements meet legislative requirements, are as equitable as possible, and are tailored to the unique needs of the individuals involved.
Whether you’re entering a new relationship, in the middle of one, or moving on from one, seeking professional legal advice early on is crucial. A financial agreement can protect your future if it’s done right. Contact the experienced family law team at MBA Lawyers today.