For couples that are involved in a defacto relationship, it is important to protect your assets. Defacto couples have the same rights as married couples when it comes to sharing assets. When a separation occurs, there can be many issues that arise regarding the assets and finances of the relationship. One of the best ways to protect these assets is to create a financial agreement with your partner. This agreement will put into place how property will be divided if the relationship does not work out. This is similar to a prenuptial agreement used by couples that are getting married.
For those that are in a defacto relationship and considering a defacto agreement, it is very important to know there are certain requirements for these agreements that must be met. It is best to have a litigator handle the document to make sure everything is done correctly.
How do Financial Agreements Work?
A financial agreement can be created by a defacto couple as a way to protect their individual assets in case the relationship comes to an end. In addition, these legal contracts may lay out how the finances will work while they are in the relationship. This agreement can cover all or just a part of the property and financial resources that the couple may have.
When creating an agreement, a couple may choose to outline how the property they bring into the relationship will be distributed. This includes any investments, real estate, superannuation, business interests, and any other type of property. These legal contracts may also be used to deal with assets that either party may acquire in the future such as an inheritance from a parent or grandparent, or a trust.
Financial agreements can be created when a couple begins living together, or if they are currently living with each other. These agreements can even be created after a defacto relationship has ended. Some couples choose to create a financial agreement when they are beginning the separation process. In this type of situation, the agreement can be used as a formal way to settle all the assets and properties that the couple had during the relationship.
The financial agreement is simply a contract that divides a couple’s property should they choose not to be together and works similarly to the prenuptial agreement signed by couples before they wed. Each person must agree to the contract terms that are being considered before it can be made legal.
The most important thing to remember when creating a financial agreement is that there are certain requirements that must be met in order for the contract to be legally binding. There are forms available on the Internet that can be used to create the agreement, making the process quite easy and more cost efficient. These online agreements come with legal advice from a professional to ensure that the contract is legitimate and meets the requirements of the law, which stops there being any potential complications if the worst should happen.