Pre-marriage financial agreements are increasingly becoming more popular, particularly for persons having second or more marriages and who have been through a difficult financial settlement previously. But can a pre-marriage financial agreement provide absolute security?
The pre-marriage financial agreement is intended to make provision for the financial settlement each pay to the marriage would receive in the event of separation.
The Family Law Act sets out legal technical requirements which must be satisfied for the agreement to be legally binding.
However, there are various grounds to have financial agreements set aside. These grounds include fraud by reason of a material non-disclosure. It is therefore essential that at the time of entering into a financial agreement, each party makes a full and frank disclosure of their financial circumstances. Failure to do so could result in the agreement being set aside and opening the way for a claim that at least one of the parties does not wish to have to deal with.
Another ground for setting aside the agreement is that one of the parties was forced to enter into it under duress. It is therefore essential that the parties are careful and thorough when entering into a financial agreement. Each party ought to enter into the agreement of their own free will, and find their own independent legal advice. Ideally the agreement should be entered into well before the wedding date so as not to give rise to any assertion that one party felt pressured to enter into the agreement.
Contact our Managing Partner, Dominic Wilson on (02) 8268 4000 or by email at craddock@craddock.com.au for friendly professional service. Dominic will refer you to an Accredited Specialist Family Lawyer.