subject: Binding Financial Agreement: Required Facts To Follow [print this page] It is tempting to call binding financial agreements pre-nups, but this ignores most of the picture. Binding financial agreements may appear at any time before, during and after a marriage ends. In essence, these describe the whole process of what occurs upon divorce such as how assets are to be separated and whether, and how much, maintenance will be offered. Why Should I Want a Binding Financial Agreement? Thats a good question. In the end, you two love each other and its till death do us part. Acquiring a financial agreement may thus be viewed as appealing fate. And, unless youve just landed the prime role in the latest blockbuster movie or won the lottery, you may believe it isnt worth the hassle.
But binding financial agreements can protect any type of asset, contingency or consequence you can imagine. They can detail routine maintenance, separation of assets (whether obtained before or during the marriage), how the children (if any) are to be looked after. As a result, these are great for protecting any asset that has sentimental value for you, whether or not it is also monetarily beneficial. They can therefore be used to protect your grandmothers priceless china collection that she bequeathed you.
Binding financial agreements as a result provide relative certainty in the regrettable event that your relationship does break down. Without a financial agreement, if you do land in court, your choice depends on what the judge believes to be appropriate, just and equitable in the circumstances, not how you make a decision. The consequences of this process are unknown until a decision is made, and even then it may be appealed, ultimately causing a long process. However, a binding financial agreement gives assurance in advance. Further, since it is an agreement, the parties don't have to obtain equal shares of the assets, although may certainly choose to do so.
Divorces and separations are painful enough already. Emotions are typically high. Adding uncertainty and lawsuits to the mix does not suggest a good final result for either person. Thus, a financial agreement should resolve several of these problems.
As the agreement is binding, you dont have to show up before a court. In fact, they prevent either party from applying to the Family Court over assets or dealings that the financial agreement covers. This reduces all the linked legal costs that are often involved with protracted divorces. Most importantly, this implies more assets for both of you pursuing the divorce. Since you dont have to appear before court, this also means you dont have to make financial reports to the court. Essentially, they are types of legal and financial insurance in the worst case scenario.
by: bfasupport
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