How to make a Financial Agreement
Steps to Make a Financial Agreement:
Negotiate and Agree: Decide on how to divide assets, liabilities, and financial resources before, during, or after a relationship. Make sure that all jointly held assets and liabilities are separated to sever all financial ties and end the financial relationship between you.
Full Disclosure: Both parties must disclose their complete financial circumstances, including assets, income, and liabilities. Both parties have the right to request and review documents from the other party and to obtain independent valuation reports. However, there is no legal requirement to exchange documents or obtain valuation reports. Don't be conned by an hourly rate lawyer who wants to clock up some hours doing this when it is not necessary.
Obtain Procedural Fairness: If your agreement includes a superannuation split, then you will need to write to the Super Fund setting out the proposed superannuation split and request that they respond with no objection. It may take them up to 28 days to respond and you will need their letter confirming no objection before you sign the Financial Agreement.
Obtain Independent Legal Advice: This is mandatory. Each party must consult with their own separate lawyer to receive legal advice about the advantages and disadvantages of the agreement.
Draft the Agreement: Either your lawyer, or your former partner's lawyer, will draft the Financial Agreement to ensure it is clear, concise, and complies with all legal requirements.
Sign the Agreement: Both parties must sign the document in front of any adult witness. You can sign the Financial Agreement electronically, for example using a program like DocuSign. While it may be preferable to use an authorised witness such as a solicitor or Justice of the Peace, it is not a legal requirement, and you can use any adult witness (except your former partner).
Include Legal Certificates: Each lawyer must provide a signed certificate confirming that independent legal advice was provided to their client.
Exchange Copies: The original document is usually signed, with one party keeping the original and the other a copy.
Serve the Super Fund: If your agreement includes a superannuation split, then you will need an authorised witness to certify the Financial Agreement, making sure that every page is signed and stamped. The you will send the certified copy to the Super Fund for them to action the super split.
