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NSW Basic Binding Financial Agreement - Will it Suffice if We Divorce?

Discussion in 'Family Law Forum' started by zerom, 6 February 2015.

  1. zerom

    zerom Member

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    I am soon to be married & I am looking at applying for joint home loans with my partner and purchasing a property before we get married. My partner will be paying a sizable deposit for the property and I will not, however we will both contribute to the repayments of the loan.

    Is it possible to get a legal agreement that states the amount of the deposit/money my partner put towards the loan and that if we were to divorce that money is rightfully hers and anything other than that specified amount is for both of us to share?

    Will this involve a costly prenup agreement or is this a simple legal agreement based solely on the deposit my partner will be contributing?

    Are you able to provide an approximate ballpark figure of what it would cost to prepare a basic financial agreement?
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi Zerom,

    A proper prenup is always more safe. However, writing down this agreement will help. If the two of you do divorce, the letter will be considered when splitting up financial assets and particularly, in relation to the house. Even if the letter is not written, each person's relative contribution (financial or otherwise) will be considered at the final financial asset settlement.

    I don't know how much this would cost if drafted by a lawyer. It would depend on how complicated/straight forward you want it to be.

    Hope this helps.
     
  3. zerom

    zerom Member

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    Thanks Tracy
     
  4. ClareB

    ClareB Well-Known Member

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    Hi Zerom,

    As noted above by Tracy, it would be safest to prepare a prenup with a solicitor.
    However, if you both so wished to prepare a BFA between yourselves, aim to do the following:-

    - Keep the document as detailed as possible; ensure the dates are correct, address is correct, names are correct - everything.
    - Annex documents to the BFA to support all relative information such as certified copies of the sale of house contract and all documents relating to the deposit amount including from which bank account and on which date it was paid.
    - There may be a period that you both feel that if you were to divorce, the deposit should be dissolved into the combined asset pool - for example, if you two were married for 20 years, would your fiance still be entitled to the full deposit amount? Include this in the BFA clearly and concisely.
    - Lastly, ensure the document is signed and witnessed and copies are kept in a safe location such as a safety deposit box.

    Congratulations and good luck!

    Clare
     

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