A binding financial agreement is a legal contract which outlines a couple's assets and the potential division of these assets and liabilities in case of separation or divorce. This agreement is commonly known as a prenuptial agreement because it is drafted prior to the wedding. However, the financial agreement can be drafted during and after the marriage. It is more favourable to prepare the document before to avoid unnecessary complications. Here are practical tips to help you navigate the preparation of a binding financial agreement.
Discuss the Benefits
You should discuss the benefits of the financial agreement with your partner before beginning the drafting. Often, these contracts cause misunderstandings and emotional distress if they are presented out of the blue. If your partner understands the implications of this contract and your goal, they will be more open to the idea. These agreements can make separation less hostile, and the divorce can be settled out of the court, reducing distress in the family. Also, the prenuptial agreement encourages openness regarding the financial status of each party. As a result, there is a lower risk of marital problems linked to financial issues. Additionally, each party can protect their assets from the irresponsible behaviours of their partner.
Draft in Time
You should not prepare the binding financial agreement right before the wedding. You should make arrangements as early as possible instead of waiting for the last minute. If you wait for too long, you might cause distress in the other party, increasing the risk of doubts and emotional distress. Also, this action can make your partner feel pressured, and this could affect your and their objectivity. You should have a good timeline for the legal process. In simple terms, you must ensure that you will both have enough time to discuss assets, create an agreement, discuss with relevant parties and finalise the agreement.
Consult a Lawyer
You should not prepare a prenuptial agreement or sign one before consulting a lawyer who deals with family law. If the court discovers that either of the party could have been forced or coerced into signing the binding financial agreement, the entire contract will become invalid. Therefore, you should both seek independent legal guidance because the emotional connection between you and your partner can affect objective decision making. You should also both acquire a statement from the lawyer stating that you received legal guidance, and you should include a legal personal statement confirming the consultation. These statements will eliminate any suspicion of coercion in the event of a separation.
Share30 June 2018
Hello, my name is Jenny and this is my probate law blog. I should say now, I am not a lawyer and I have not had any professional legal training. However, I do know a thing or two about probate. I taught myself a lot after the death of my grandma. My grandma left a lot of money and property behind, but unfortunately, she didn't leave a will. This lead to several family members staking a claim on the inheritance. I instructed a lawyer to act on my mother's behalf to ensure that she was not cheated out of her share.