At Family Law Resolution Centre, we often speak with clients who are looking for clarity and reassurance around how to protect their financial future—whether they’re navigating a separation, or planning for life after divorce.
A Financial Agreement is one way to do just that. In this article, we explain what a Financial Agreement is, when it might be appropriate, and what you need to consider if you’re thinking about putting one in place.
What Is a Financial Agreement?
A Financial Agreement is a private, legally recognised contract between two people in a relationship—whether married or in a de facto relationship. It outlines how finances, property, superannuation and, in some cases, spousal maintenance will be handled if the relationship ends.
These agreements can be made at any stage of a relationship:
- Before the relationship starts (often referred to as a “prenup”)
- During the relationship
- After separation or divorce
Financial Agreement’s are available to both married and de facto couples under the Family Law Act 1975 (Cth), and can provide peace of mind by offering clarity about how financial matters will be managed in the future.
It is important to be aware that Consent Orders are another way to formalise property settlement agreements after separation. It is important to seek legal advice to know which document is right in your circumstances.
What Makes a Financial Agreement Legally Binding?
For a Financial Agreement to be recognised by the Family Court and enforceable under the Family Law Act, there are some strict legal requirements, that include but are not limited to:
- Both parties must receive independent legal advice before signing the agreement.
- Each party must be advised about how the agreement affects their rights and whether it is in their best interests.
- Each lawyer must provide a signed statement confirming that advice was given.
- The agreement must be signed voluntarily, without pressure or coercion.
- The agreement must comply with the technical legal requirements of the Family Law Act.
If these steps aren’t followed correctly, the agreement may not be enforceable and could potentially be challenged in court.
Can a Financial Agreement Be Overturned?
In some circumstances, yes, a Financial Agreement may be overturned (depending on the particular circumstances) including the following:
- There was fraud or non-disclosure of assets
- One party was pressured or coerced into signing the agreement
- There has been a significant change in circumstances (for example, relating to children)
- The agreement is found to be unjust or impractical to carry out
That’s why it’s so important that Financial Agreements are carefully drafted and that both parties receive proper legal advice. We take this responsibility seriously, ensuring every client fully understands the legal implications of the agreement they are entering into.
What Are the Benefits of a Financial Agreement?
Every client’s situation is different, but in many cases, a Financial Agreement offers:
- Certainty about how assets will be divided
- Control over the outcome, rather than leaving it to a judge
- Reduced risk of conflict during separation
- Time and cost savings, compared to litigation
We’re here to support you in determining whether a Financial Agreement is suitable for your situation and to help you create an agreement that reflects your values and priorities.
How We Support You
At Family Law Resolution Centre, we see the law as a tool to help people move forward. We don’t just focus on paperwork—we focus on people. That means listening carefully, understanding what matters to you, and tailoring advice that meets your needs.
We offer free 15 minute family law consultations, where we discuss your circumstances and provide clear, honest guidance about your options—including whether a Financial Agreement is the right path for you.
FAQs
Do I need a lawyer to make a Financial Agreement?
Yes. Independent legal advice is a legal requirement under the Family Law Act for the agreement to be binding.
Can we do a Financial Agreement after separating?
Absolutely. A Financial Agreement can be created at any point—even after separation or divorce—to formalise how finances will be handled.
Is a Financial Agreement the same as a Consent Order?
No. Consent Orders are approved by the court, while Financial Agreements are private agreements. Both have advantages depending on the situation.
What if my partner doesn’t fully disclose their finances?
Full and frank disclosure is essential. If assets are hidden, the agreement could be set aside later.
Is it expensive to make a Financial Agreement?
Costs vary depending on complexity, but a well-prepared Financial Agreement can save time, money and stress in the long term as opposed to the court process.
Disclaimer
Any advice is general in nature, may not apply to your specific situation and must not be relied upon as legal advice. In instances of family law, situations should always be evaluated on a case-by-case basis. As such, we always recommend you seek specific advice tailored to your circumstances. Please feel free to get in touch if you would like to discuss your matter.