Do De Facto Couples Need a Binding Financial Agreement?

A de facto couple is a couple (same sex or different sexes) that are in a sexual relationship, live together (fully or part time) and act like a married couple, except these couples are not married legally. You may be wondering whether you need a binding financial contract if you are in a de facto relationship. This article explains the situations under which this contract would help you.

Specifying How Spousal Maintenance Matters Should Be Handled

Spousal maintenance claims may be made against you or you may be entitled to some spousal support in the event that you separate with your de facto partner. A binding financial agreement helps to clarify how this matter should be handled in case the need arises.

For instance, you may exonerate your de facto partner from ever having to provide spousal support to you in case the relationship ends, or you may agree on how much support should be given. Such a clause in a binding financial agreement reduces the amount of time taken to reach an agreement in case the relationship ends.

Asset Distribution Formula

A binding financial agreement can set out how you would like your assets to be divided in the event that you separate as a de facto couple. This agreement allows you to agree on this very sensitive matter while you are still on the best of terms so that when matters sour, you just use the agreement you made earlier to expedite the asset distribution process. For instance, you can agree to waive your claim on the home in which you live as a couple and take shares in a company in lieu of your entitlement on the home you live in.

It Removes Any Doubts You May Have Regarding the Intentions of Your Partner

If you are wealthier than your de facto partner is, you may have some doubts regarding his or her motivations for being with you. A binding financial agreement that protects your assets helps to reassure you that your partner is with you because he or she loves you and not because of your wealth. Once both of you sign the binding financial agreement, you can now concentrate on building a life together without worrying that your assets are at risk.

As you can see, a binding financial agreement serves the same purpose as a prenuptial agreement. It is a very important agreement so consult your de facto lawyers such as Calvin Nelson & Co before you assent to or sign anything.