Financial Agreement under Section 90C
Financial Agreement Under Section 90C: Everything You Need to Know
The Family Law Act 1975 (FLA) provides for financial agreements to be entered into by parties to a marriage or a de facto relationship. A financial agreement is a legally binding document that outlines how financial matters will be dealt with in the event the relationship breaks down. One type of financial agreement is a Section 90C agreement, which is created under Section 90C of the FLA.
In this article, we’ll discuss what a Section 90C agreement is, how it works, and when it’s appropriate to use one.
What is a Section 90C agreement?
A Section 90C agreement is a financial agreement made between parties to a marriage or a de facto relationship. The agreement is made in accordance with Section 90C of the FLA, which sets out the requirements for creating a valid financial agreement.
A Section 90C agreement can deal with a range of financial matters, including:
– How property is to be divided in the event of separation
– How spousal maintenance will be paid
– The payment of child support
– The treatment of assets acquired during the relationship
– The treatment of assets that were owned prior to the relationship
– The parties’ financial resources and liabilities
How does a Section 90C agreement work?
When parties create a Section 90C agreement, they are essentially agreeing on how their finances will be dealt with if their relationship breaks down. The agreement must be in writing and signed by both parties, and each party must receive independent legal advice before signing.
A Section 90C agreement can be made before, during, or after a marriage or de facto relationship. However, the requirements for creating a valid agreement differ depending on when the agreement is made:
– If the agreement is made before the marriage or de facto relationship, it’s known as a “pre-nup” or a “pre-dec agreement”. The agreement must be signed at least 28 days before the wedding or commencement of the de facto relationship.
– If the agreement is made during the marriage or de facto relationship, it’s known as a “mid-nup” or a “mid-dec agreement”. The agreement can be signed at any time during the relationship.
– If the agreement is made after the marriage or de facto relationship has ended, it’s known as a “post-nup” or a “post-dec agreement”. The agreement must be signed within 12 months of the date of the divorce or separation.
When is a Section 90C agreement appropriate?
A Section 90C agreement may be appropriate in a number of circumstances:
– If one or both parties have significant assets or liabilities that they wish to protect in the event of a separation
– If one or both parties have been through a divorce or separation before and want to avoid a repeat of the financial consequences
– If the parties have children from previous relationships and want to ensure that their assets are protected for their children
– If the parties want to avoid the uncertainty and expense of going to court to resolve financial matters in the event of a separation
It’s important to note that a Section 90C agreement may not be appropriate in every situation. For example, if one party is significantly disadvantaged by the agreement, it may not be considered fair and may be set aside by the court.
Conclusion
A Section 90C agreement can be a useful tool for parties to a marriage or de facto relationship who wish to protect their assets in the event of a separation. However, creating a valid and enforceable agreement requires careful consideration and legal advice. If you’re considering a Section 90C agreement, it’s important to consult with an experienced family lawyer who can advise you on the requirements, benefits, and risks of creating such an agreement.
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