Love and Finance – Protecting yourself financially before, during and after a relationship
Jun 03, 2024
By: Rebecca Dahl
In a world where Hollywood often portrays diamonds, perfect blowouts, and bold red lips as the epitome of allure, many family lawyers argue that a different kind of sexy holds true: financial security.
When we talk about love, our minds often wander to romance, companionship, and joy. But nestled within these warm sentiments lies a crucial consideration – the practicality of securing our financial futures within relationships. While it might not be the most glamorous topic, ensuring financial well-being is vital for future stability and peace of mind.
Empowering Financial Independence: Enter the Binding Financial Agreement 📝
Protecting our assets within relationships can be really important for many of us. One effective method is through a Binding Financial Agreement, often referred to as a prenuptial agreement. Contrary to popular belief, these safeguards aren't just for the elite; they're accessible and frequently embraced by individuals from all walks of life.
A Binding Financial Agreement outlines how a couple's assets will be divided in the unfortunate event of a relationship breakdown. It can be established before, during, or after a relationship's end and is open to married and de facto couples.
When properly drafted and executed, a Binding Financial Agreement is powerful because it removes the court's jurisdiction from property proceedings. This means that the agreed-upon asset division stands in the event of a split, allowing for a swift and cost-effective separation process.
Certain criteria must be met for a Binding Financial Agreement to hold legal weight. Both parties must sign the agreement after receiving independent legal advice about the advantages and disadvantages of entering into it and its implications. Each party must also receive a signed statement from their respective lawyer confirming this advice.
Navigating Property Settlements with Confidence 🏘️
Without a Binding Financial Agreement, the path to property settlement can be more complex. The court may become involved in dividing assets, a process that involves several steps:
Step 1: Evaluating the Asset Pool 🏡🚗
Assets and liabilities, including properties, businesses, vehicles, superannuation, and family trusts, are assessed to determine the net asset pool available for division. It's important to note that assets are valued at settlement, not at the time of separation or divorce.
Step 2: Recognising Contributions 🎁💰
Financial and non-financial contributions made by each party throughout the relationship are evaluated. This includes homemaking contributions, financial earnings, gifts, inheritances, and more, each contributing to the overall percentage split.
Step 3: Addressing Future Needs 👧👦
Each party's future needs, including age, health, income, childcare responsibilities, and other relevant factors, are considered.
Step 4: Ensuring Equitable Settlements 🙋🏻♀️🙋🏻♂️
The court examines whether the proposed settlement is fair and equitable to both parties.
Post-Separation Financial Responsibilities ❤️🩹
Following a breakup, financial matters extend beyond property division. Parties may seek spousal maintenance or child support, further emphasising the importance of financial planning within relationships.
Spousal maintenance provides financial support to a partner who may be unable to meet their needs independently, particularly if they're the primary caregiver for a child or face physical or mental limitations. Child support ensures that the financial responsibilities of raising a child are shared, even after separation.
Embracing Financial Empowerment 🤝
Safeguarding our assets through a Binding Financial Agreement isn't about anticipating failure; it's about proactively securing our futures. By taking control of our financial destinies, we can confidently navigate relationship changes, avoiding the time and expenses associated with court proceedings.
If you're considering a Binding Financial Agreement or need guidance on property matters, contact Nicholes Family Lawyers at (03) 9670 4122 to schedule an initial consultation. Your financial independence matters, and we're here to support you every step of the way.
About The Author 👩
Bec Dahl is a Partner at Nicholes Family Lawyers, a leading specialist provider of family law services with offices in Melbourne and Geelong. She possesses expertise in a wide variety of family law matters, including but not limited to complex children’s issues, interstate and international relocation, property settlements, as well as divorce and de facto relationship law.
Learn more about Bec at https://nicholeslaw.com.au/staff/rebecca-dahl/
