Hi there. When entering a relationship, or marriage, you may wish to protect any property or assets of yours that you do not want to be divided with your partner if the relationship breaks down. A financial agreement (commonly referred to as a “prenuptial agreement”) is a binding contract that allows you to achieve this. This agreement can be created before, during or after the relationship, and applies to both marriages and de facto relationships.

A financial agreement is unique to every relationship and so there is no formula for what it should contain. However, there are strict legal rules around how the agreement is prepared and entered into. If these rules are not followed, the Family Court may declare the agreement invalid.

In your case, assuming you want to make a financial agreement to keep your two properties separate from the relationship, and ensure the terms of any property division are clearly agreed upfront, then the first step is to obtain the consent of your partner. If your partner consents, the next step is to ensure that you follow these rules for preparing and signing the agreement:

• The agreement must be signed by both parties.
  
• Before signing the agreement, both parties must obtain independent legal and financial advice on all aspects of the agreement, including how it affects their rights and whether the terms are just and equitable.
  
• A lawyer must provide a signed statement that legal advice was provided to each party.
  
• The agreement must not have been set aside or terminated by a court.
  
• The agreement must satisfy the written requirements according to the principles of contract law.

Where both parties sign a financial agreement that complies with the above requirements, it will become legally binding. The agreement can be enforced by either party through a court if the relationship breaks down in the future.

Suggested way forward

For a financial agreement to be binding, it is important that a lawyer provides advice to both parties and helps prepare the documents. You should consider speaking to a family lawyer about your legal options and executing a financial agreement. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.