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Financial agreements are binding and enforceable, but only if they are made in a way that follows the procedures required by the Family Law Act.
Financial agreements describe how the property and financial resources are to be divided between the parties if they separate. The agreement may provide for the maintenance of one or both parties.
The agreement must be in writing and signed by each of the parties. It is necessary for each party to have obtained independent legal advice before signing the agreement.
Financial agreements can be terminated by written consent or set aside by a court.
The Family Law Act provides for binding financial agreements to be made between parties to a marriage, a de facto relationship or a same sex couple. These agreements can be made before, during or after the end of the marriage or relationship. Parties entering into a relationship agree what will happen in the event that they separate. Parties entering into a second relationship or with substantial assets often like the protection of a financial agreement.