Section 90B Family Law Act is extremely important as it discusses points regarding financial agreements before marriage. Under family law, all parties are recommended to proceed with financial agreements before marriage.
This is because financial agreements prevent disputes and conflicts in case of unfortunate events like divorce or separation. Therefore, each party should familiarise themselves with Section 90B Family Law Act.
In this blog, we discuss aspects related to Section 90B Family Law Act by exploring what the Section mentions in regards to financial agreements before marriage.
Section 90B Family Law Act: Binding Financial Agreements
Binding financial agreements are contracts between two people that sets out how division of property shall take place if the parties separate or divorce. Even same-sex couples can enter into a binding financial agreement.
These are also known as prenuptial agreements or BFAs. Notably, parties can enter into a binding financial agreement either before their marriage, during the course of their relationship, or after their relationship has ended.
However, for the purposes of this blog on Section 90B Family Law Act, we will be focusing on prenuptial agreements or BFAs made before marriage.
What information does binding financial agreements contain? Given below is a list of things that may be included in a BFA:
- Assets and debts;
- Both personally owned assets and joint assets
- How property will be divided;
Moreover, while making financial agreements before marriage, parties can also include information regarding spousal maintenance. Spousal maintenance are financial support payments that one party makes to their former spouse following divorce or separation.
These payments are meant to support the other spouse until they can become financially independent by obtaining gainful employment. The amount of payment depends on factors like the age of both parties, their income earning capacity and their physical well-being.
Importance Of Making Binding Financial Agreements Before Marriage
Preparing BFAs before marriage gives a couple financial certainty. In the event of the breakdown of a relationship, the couple can use their BFA and split property peacefully.
For those who fail to make BFAs before marriage, lawyers often notice that their divorce or separation is more contentious. There are disputes and conflicts about who should get what. Moreover, if the couple is not able to resolve their issues, they will need to approach the family court.
That can be a very lengthy and costly procedure. Therefore, it is important to prepare BFAs before marriage. Where it is not possible to make a prenup before marriage, parties will still have opportunities to prepare one during their marriage, or after their relationship has ended.
These agreements are legally binding and each party needs to follow the terms of the agreement. There are many requirements to make a binding financial agreement. For instance, both parties are required to sign the agreement.
Moreover, there are many other benefits like transparency and flexibility on how the property should be divided. To read the requirements and other benefits, read our detailed blog on binding financial agreements here.
Family Lawyers For Your Legal Needs
Whether you need family lawyers to prepare prenuptial agreements, or for other family law matters like parenting and child-related issues, JB Solicitors is the family law firm for you.
For more information on different sections of the Family Law Act, check our blog page on the same here.
Contact us if you have any enquiry.
FAMILY LAW ACT 1975 – SECT 90B
Financial agreements before marriage
(a) people who are contemplating entering into a marriage with each other make a written agreement with respect to any of the matters mentioned in subsection (2); and
aa) at the time of the making of the agreement, the people are not the spouse parties to any other binding agreement (whether made under this section or section 90C or 90D) with respect to any of those matters; and
(b) the agreement is expressed to be made under this section;
the agreement is a financial agreement. The people may make the financial agreement with one or more other people.
2) The matters referred to in paragraph (1)(a) are the following:
(a) how, in the event of the breakdown of the marriage, all or any of the property or financial resources of either or both of the spouse parties at the time when the agreement is made, or at a later time and before divorce, is to be dealt with;
(b) the maintenance of either of the spouse parties:
(i) during the marriage; or
(ii) after divorce; or
(iii) both during the marriage and after divorce.
(3) A financial agreement made as mentioned in subsection (1) may also contain:
(a) matters incidental or ancillary to those mentioned in subsection (2); and
(b) other matters
(4) A financial agreement (the new agreement ) made as mentioned in subsection (1) may terminate a previous financial agreement (however made) if all of the parties to the previous agreement are parties to the new agreement.