Financial Agreements
A binding financial agreement is a private agreement about property, financial resources or maintenance. Often called a prenup, it can be made before, during or after a marriage or de facto relationship. We draft agreements and advise people who have been asked to sign one.
What an agreement can cover
An agreement can deal with your overall financial arrangements or just a particular asset or issue.
You might want to specify how a family farm, a business, an inheritance or property you owned before the relationship will be treated if you separate. In a second relationship, this may include preserving assets for children from an earlier relationship.
An agreement can also deal with maintenance: whether one of you will provide financial support to the other after separation, and on what terms.
Agreements after separation
A financial agreement can be used to formalise a property settlement after separation, as an alternative to consent orders.
Unlike consent orders, a financial agreement does not need the court’s approval. The two options have different requirements and legal effects. We can advise on which is appropriate for the settlement you want to make.
Before you sign
A financial agreement must meet the requirements of the Family Law Act. Each of you needs independent legal advice before signing, about its effect on your rights and the advantages and disadvantages of making it.
That advice matters because you may be agreeing to a different outcome from the one you could otherwise seek under the Family Law Act. You need to understand what you would receive, what you may be giving up and how the terms could affect you in the future.
Both financial positions need to be fully disclosed. If you have been asked to sign an agreement, we can review the proposed terms and advise on whether they are in your interests.
When an agreement can be set aside
A court can set aside a financial agreement in limited circumstances. These include fraud or significant non-disclosure, improper pressure, or changes that make the agreement impracticable to carry out.
A significant change involving the care of a child may also provide grounds if keeping the agreement would cause hardship to the child or their carer.
These are specific legal tests. A change in circumstances does not, by itself, undo an agreement.
“Emma and her team at PWB guided me through one of the most emotional and stressful periods of my life. After more than 20 years of marriage and with three teenage children, navigating separation was incredibly challenging. Throughout the financial agreement and mediation process, Emma communicated clearly and professionally, offering genuine support. She explained complex issues in an easy-to-understand way, giving me the confidence to make informed decisions. I truly don't know how I would have managed without Emma and her team's guidance. I am incredibly grateful for their expertise, compassion, and support, and I would highly recommend them.”
Selina — Client
Common Questions
A private agreement about property, financial resources or maintenance, made before, during or after a marriage or de facto relationship. It does not require court approval, but must meet legal requirements to be binding. Each of you needs independent legal advice before signing. A court can set an agreement aside in limited circumstances.
It must meet the requirements of the Family Law Act. These include a written agreement signed by the parties, independent legal advice for each partner before signing, and the required signed statements from the lawyers confirming that advice. Financial disclosure and the circumstances in which the agreement was made also matter. Whether a particular agreement is binding needs legal assessment, not just a check that it has been signed.
Yes. In Australia, a prenup is generally a financial agreement made before marriage. Agreements can also be made before a de facto relationship, during a relationship or after separation. They can set out how specified property or maintenance will be dealt with if the relationship ends. Both people need independent legal advice before signing, and the agreement must meet legal requirements. Read about what financial agreements can cover.
Yes, in limited circumstances. Grounds can include fraud or significant non-disclosure, improper pressure, or later circumstances that make the agreement impracticable to carry out. A material change involving a child’s care may also provide grounds where keeping the agreement would cause hardship to the child or their carer. These are specific legal tests; a change in circumstances does not automatically undo an agreement. Read more about financial agreements and challenges.
