Prior to entering into a marriage, many people prefer to discuss financial matters with their partner, which often leads to the creation of pre-nuptial agreement, or financial plan, as it is often called. The purpose of this agreement is to agree upon the division of assets in the event of a divorce, and there is a slight difference between a pre-nuptial and a financial agreement in that the pre-nuptial agreement would be in place prior to the wedding or the start of the relationship, whereas the financial plan can be created at any time during the relationship.

Reasons to Create a Financial Plan

There are many reasons to come to an agreement with your partner, which include the following:

·         To protect the financial inheritance of your children.

·         If one party has significant financial worth.

·         To safeguard a successful business.

·         To protect an inheritance.

Many people have already been through a divorce when they meet someone and are about to enter into a new relationship, and they may have suffered financially with their first divorce and therefore, wish to take steps to protect their financial worth.

Sourcing a Family Lawyer

Once you and your partner are in agreement that a financial plan is a good idea, simply contact the best family lawyer in Adelaide, who would make an appointment to discuss the many options. The legal expert would help you to decide on the contents of the agreement and can always advise regarding aspects to include. Once the agreement is in place, the family lawyer will draft the document for both parties to go over and eventually sign.

Protecting your Children’s Future

By creating a financial agreement, you can protect your children’s financial future, thus avoiding any conflict in the event of a divorce of separation. This type of agreement can also be used in de-facto relationships, and once in place, the agreement would be the basis of asset division in the event the relationship breaks down.

The Importance of Legal Advice

When two people enter into a financial agreement, it is vital they both fully understand and accept the provisions of the agreement. The lawyers of both parties must also sign the agreement, testifying that their client has been duly advised and fully understands the nature of the binding agreement. This kind of agreement is very popular with people who have previously been married or in a long-term relationship and understand the need for an agreement that concerns assets.

Assets Accrued Prior to the Relationship

The primary objective of a financial agreement is that both parties can protect any assets they acquired prior to the relationship, and should the relationship even come to an end, the separation will be straightforward and there are unlikely to be any conflicts regarding asset division.

If you would like to protect your financial worth prior to entering into a long-term relationship, discuss the matter with your partner, then you can both receive legal advice before drafting the agreement.