It is appealing to call binding financial agreements “pre-nups”, but this disregards a lot of the picture. Binding financial agreements can occur at any point before, during and even after a marriage has ended. Basically, these explain the entire process of what occurs upon divorce such as how assets are to be partioned and whether, and how much, maintenance will be supplied. Why Should I Want a Binding Financial Agreement? That’s a good question. In the end, you two love each other and it’s “till death do us part.” Getting a financial agreement may thus be seen as tempting fate. And, unless you’ve just landed the prime role in the latest blockbuster movie or won the lottery, you may believe it isn’t well worth the trouble.
But binding financial agreements can cover any kind of asset, contingency or consequence you can think of. They can detail preservation, splitting up of assets (whether purchased before or during the marriage), how the children (if any) are to be cared for. Therefore, these are perfect for safeguarding any asset that has expressive value for you, whether or not it is also monetarily beneficial. They can for that reason be used to protect your grandmother’s priceless china collection that she bequeathed you.
Binding financial agreements as a result provide relative assurance in the unlucky event that your relationship does break down. Without a financial agreement, if you do land in court, your choice will be based on what the judge deems to be appropriate, just and equitable in the circumstances, not how you make a decision. The effects of this process are unknown until a determination is created, and even then it may be appealed, resulting in a drawn out process. On the other hand, a binding financial agreement offers guarantee ahead of time. Further, because it’s an agreement, the parties don’t have to obtain equivalent shares of the assets, although may certainly decide to do so.
Divorces and separations are distressing enough already. Emotions are typically high. Adding uncertainty and lawsuits to the mix does not suggest a good outcome for either person. Thus, a financial agreement should resolve many of these challenges.
As the agreement is binding, you don’t have to show up before a court. In fact, they hinder either party from applying to the Family Court over assets or dealings that the financial agreement addresses. This cuts out all the related legal costs that are often involved with protracted divorces. Definitely, this means more assets for both of you pursuing the divorce. Since you don’t have to show up before court, this also means you don’t have to make financial reports to the court. Essentially, they are forms of legal and financial insurance in the worst case scenario.
Discover how a Binding Financial Agreement can benefit you. Visit our Binding Financial Agreement website for more.. Also published at Aspects That Occur In Binding Financial Agreement.