Many couples will draft a binding financial agreement when they first start a relationship as they want to be sure they have the right protection in place for their assets.
However, individuals will also need to know which areas they need to consider if they want to draft a comprehensive document. Before contacting a family lawyer, here are four assets couples will need to consider and calculate the value of:
1) Real Estate
Property is one of the biggest areas for individuals to consider when it comes to drafting a binding financial agreement. This arrangement will need to include any property that an individual had at the time the relationship started, as well as property purchased jointly over the course of a marriage or de facto partnership.
The division of property in a binding financial agreement will also need to consider future changes to a relationship. If a couple plans on having children, for example, an agreement will need to reflect this.
In situations where one individual remains in full-time work and their partner takes time off work, to raise children for example, there will be an inevitable imbalance in the size of the two parties' superannuation contributions.
Determining how this asset will be split in the future and factoring in superannuation when drafting a financial agreement can ensure that both parties have a fair share of the collective superannuation once they retire.
3) Family heirlooms
Individuals who own items with specific sentimental value - such as family heirlooms - will need to consider how these might be handled in the event of a divorce. Although these items may not have a high resale value, individuals will need to include them within a binding financial agreement if they want to ensure they remain within their family.
4) Family trusts and inheritances
As well as the immediate property held jointly by a couple, it is also important to consider areas like family trusts and inheritances which might impact the final distribution of an estate. Inheritances in particular can be a major factor in a divorce financial settlement.
If you would like more information on how to begin the process of drafting a binding financial agreement, make sure to contact a family lawyer.