A premarital agreement falls under the category of a binding financial agreement or a BFA. These documents are contracts signed by both members of a couple before they get married. Essentially, the contract outlines what happens to their finances in the situation that they get a divorce.
Relationship agreements can be difficult to draw up, which is why you will need to enlist the help of experienced Sydney family lawyers. It is important to understand that these contracts are complicated and conditional on a variety of different circumstances, so if you want to be sure that it will stand if you get a divorce, both you and your partner will need to hire separate Sydney family lawyers.
Whether you deice to get a binding financial agreement drawn up before getting married or not is completely up to you. There are clear pros and cons to the situation, so if you are unsure, get advice from a qualified Sydney family lawyer before going ahead.
Keep reading to find out some of the most common reasons why couples decide to hire a Sydney family lawyer to help them with their relationship agreement.
1: They were together for a short period of time before getting married
In some situations, couples aren’t together for very long before they decide to get married. This means that they may feel like they don’t know each other that well. In these cases, it can be a good idea to enlist the help of a Sydney family lawyer to draw up a relationship agreement for you.
For couples who have only had a short relationship, a BFA can ensure that both parties are in the relationship for the right reasons and not for financial gain.
2: One person has considerably more money than the other
Not everyone makes the same amount of money, it is a fact that there some people are simply wealthier than others. Whilst this shouldn’t, and doesn’t prevent people from getting into relationships, it is something to consider.
The last thing anyone wants is to be used for their money; it is far too easy for people to get married, then divorced and take their ex partners money. This is why a binding financial agreement is a good idea.
A Sydney family lawyer will explain to you that a relationship contract will protect you in the situation that you do break up and your partner wants to take a large sum of your money and assets.
3: One or both people are business owners
Owning a business is one of the most challenging and rewarding things in life; oftentimes business owners put everything they have into making their company a success. This is why you need to feel sure that no one can take it away from you.
Sydney family lawyers say that one of the most common reasons why couples get a binding financial agreement is to protect their business. A legal professional with experience in premarital agreements will be able to create a document that states that if the relationship breaks down the business will not be divided between the two parties.
4: They have children
Having children from a previous relationship can complicate things. It’s no secret that your children will always come first, and while a will generally specifies what happens to your assets in the event of your death, it is always a good idea to have a financial plan.
A binding financial agreement can help your children and protect your assets and ensure that your child or children do not get affected financially by any potential divorce or separation.
If you are considering a binding financial agreement, it is highly recommended that you speak to an experienced Sydney family lawyer.