What you’ll be looking for is a legal product called a Financial Agreement. In it, you can specify the deal you have reached with your partner about what will occur with your wealth if, despite your best efforts, you ultimately decide to go your separate ways.
Financial Agreements can be made in anticipation of commencing a de facto relationship or getting married, or if you are already in a de facto relationship or married.
How Financial Agreements Work
Their terms can record your unique agreement about financial outcomes in the event of relationship breakdown, including how your separate wealth will be divided, and the treatment of any wealth you have acquired together.
For example, it might be that you each simply retain your pre-relationship property (and the fruits thereof), or it might provide for a defined provision, payable by one spouse to the other.
The outcome you have flagged in your question (keeping your own money in the event of relationship breakdown) is often called a ‘quarantine’ style Agreement (where each spouse keeps their own property).
You are free to craft your own outcome when putting together you unique financial agreement.
The Details are Important
Financial Agreements do require a bit of thought however, as your relationship will change over time – you may acquire property together, you may have children together, you may go into a joint-venture together – there are a variety of things that ‘life’ can bring, and which will change the way each of you will look upon the division of joint and separate wealth if you ever separate.
Accordingly, when discussing what your unique Agreement might provide, have an eye on the short-term, but also the medium and long-term.
Negotiating Terms of a Financial Agreement
As to the negotiation of those terms, do what works best for you – some people can discuss these things between themselves, others find it helpful to have a counsellor, or their family lawyer, lead those discussions.
Note that, for a Financial Agreement to be binding, each of you will need to have independent legal advice about the effect of the Agreement on your rights, and the advantages and disadvantages the Agreement holds for you at the time of that advice.
And remember – you will want this document to do its job if and when divorce / separation ever occurs down the track, so don’t cut corners – see a specialist family lawyer, experienced in negotiating and preparing Financial Agreements.
Is a Financial Agreement worth getting?
They are an expensive product, but when prepared thoughtfully, and in compliance with the law, a Financial Agreement can save a great deal of legal cost and anxiety if separation ever becomes a reality.
WE CAN HELP
At BGm Family Lawyers, we are experienced with all facets of Family Law including dealing with Financial Agreements (pre-nuptial agreements).
If you need assistance drafting a pre-nuptial agreement or interpreting a pre-nuptial agreement before you sign, get in contact with our dedicated team on 1300 246 529.
Othr Resources about Financial Agreements
We have written extensively about Financial Agreements on our blog, and some articles which may be of help can be found here:
‘Pre-nups – the death of love’
‘How to get a pre-nup over the line’:
‘I’m not signing this – what to do when your pre-nup seems like a bad deal’
