Before De Facto Cohabitation.
Changes to the Family Law Act a few years ago has made it possible for defacto couples to make 'Financial Agreements'. This means that de facto couples can make the equivalent of a 'prenuptial agreement' before they commit to living together in a domestic situation and partnership.
Making a pre de facto agreement before you move in together gives you peace of mind that your assets are protected. It allows you to stipulate and quarantine particular assets or financial resources from claim should the relationship break down.
By “isolating” those assets, each party is able to leave the relationship, should the need arise, with the property they brought in. Putting your agreement in writing puts a stop to the niggling doubts and "what if?" questions.
This type of legal arrangement is quite common, it takes care of the practical matters and is generally no more difficult than a Will to draft.
Let's look at an example
Greg and Yana are a professional couple, each of them recovering from a previous marriage split. Although they both feel their new relationship will be strong and withstand the test of time, they are nervous about combining all of their finances before they have been together for a longer period.
What should they do?
Greg and Yana can enter into the next phase of their life together and still take care of the financial arrangements.
Essentially, both Greg and Yana make a declaration of the assets and liabilities they own before moving in together and include it in their Financial Agreement. They are each responsible for the debts they bring to the table and each can leave with the assets they they have brought into the partnership. If they choose, they can also make provision for separate or combined living expenses.
A Certificate of Legal Advice is also required
The Family Law Act requires a Certificate of Legal Advice
Section 90UJ of the family law act requires both parties to obtain certification of independent legal advice from a legal practitioner.
Once the advice is given, the solicitor for each party will attach a Certificate confirming that advice was given prior to the parties signing the Agreement.
This prevents either party from arguing that, at the time of making the agreement, they were unaware of the ramifications of signing the agreement.
Make sure you visit our Agreement Review page to learn more about this requirement and to find out how you can obtain your certificate of legal advice at a fraction of the normal solicitor costs.
Easy to Use Kit available for immediate download
This pre de facto agreement kit has been professionally drafted to comply with section 90UB of the Family law Act and allows you to complete a pre defacto financial agreement with a minimum of fuss. It includes;
- The Financial Agreement
- Easy-to-follow instruction Guide
- Sample pre de facto financial agreement and several sample clauses to assist you in drafting your own professional agreement
- optional use of our fixed price Document Review Service