Financial Agreement Under Section 90B of the Family Law Act 1975: Everything You Need to Know
When a couple decides to enter into a long-term relationship, they often discuss their future together. Part of these conversations may involve financial matters, including their income, assets, and debts. However, as the old saying goes, “nothing is certain but death and taxes.” Sometimes, even the most committed couples may decide to part ways, and when they do, it is crucial to have a solid financial agreement in place.
In Australia, Section 90B of the Family Law Act 1975 provides a framework for financial agreements, which is an agreement between two parties regarding their property, financial resources, and other financial matters in the event of separation. These agreements can be made before, during, or after a marriage or de facto relationship, and they can be legally binding if the requirements of the Act are met.
What are the requirements for a legally binding financial agreement under Section 90B?
To ensure that a financial agreement under Section 90B is legally binding, the following conditions must be met:
1) The agreement must be in writing and signed by both parties.
2) Each party must receive independent legal advice before signing the agreement. This means that each party must consult with their own lawyer, who will explain the nature and effect of the agreement, and provide advice on the advantages and disadvantages of entering into the agreement.
3) Each party`s lawyer must sign a certificate stating that they have provided independent legal advice.
4) The agreement must not be subject to fraud or undue influence.
What should be included in a financial agreement under Section 90B?
A financial agreement under Section 90B can cover a wide range of financial matters, including:
1) The division of property and assets in the event of separation.
2) The payment of spousal maintenance or other financial support.
3) The allocation of debts and liabilities.
4) The treatment of inheritances, gifts, or windfalls.
5) Any other financial matters that the parties wish to include that are not contrary to the law or public policy.
Why is a financial agreement under Section 90B important?
A financial agreement under Section 90B can provide clarity and certainty for both parties in the event of separation. It can also help to avoid lengthy and expensive court proceedings, which can be emotionally and financially draining. By having a financial agreement in place, both parties can have peace of mind knowing that their financial affairs have been settled in advance, and they can move on with their lives.
In conclusion, if you are in a long-term relationship, whether married or de facto, it is essential to consider a financial agreement under Section 90B of the Family Law Act 1975. This agreement can provide you with certainty and peace of mind in the event of separation, and can help to avoid lengthy and expensive court proceedings. However, it is important to ensure that the agreement meets all the legal requirements and that both parties receive independent legal advice before signing. By doing so, you can protect yourself and your financial future.