VIC Defacto separation and financial agreements.

[Destiny]

Hello My defacto and I are very likely separating after approx 13 years.
His health is declining due to excess alcohol and nearing retirement in a few months. I am 7 years younger. He is very writing and technology illiterate, so wants everything done by me, at my time and unpaid costs although he earns more than twice my income. I am a sole small business, and he is employed with a small sole business on the side weekends.
We have a primary home nearly paid out, the two sole businesses, separate bank accs except mortgage payment acc, but he has a significant inheritance (approx 130,000) in which half could be used to payout debts taken unsecured in his sole name. I have no debts, inheritance 2 years ago of approx 40K and used half already to contribute to my new car and home goods. He has also old cars (not working) bought into relationship and expensive equipment. Technically he would be better off asset wise, but I not worried about his cars etc, just his debts deliberately not being paid from his inheritance!
I am hoping to agree on assets etc and save alot on solicitor costs etc. I wish to put forward that the only thing that comes into effect are the house sale with all the sole assets etc remaining in the sole name they currently belong.
If possible to get him to agree, what forms would we be required to complete or do we need to go through the lengthy consent orders/court process?

 

[CSFLW]

Destiny, simply you cannot write an agreement unilaterally and expect to have it formally recognised by a court.

 

[Atticus]

I wish to put forward that the only thing that comes into effect are the house sale with all the sole assets etc remaining in the sole name they currently belong.
If possible to get him to agree, what forms would we be required to complete or do we need to go through the lengthy consent orders/court process?

It is possible to bypass the need for court ratified orders by consent .... You will NOT however be able to avoid legal costs.

What you want is a Binding Financial Agreement (BFA) It will require you both to receive independent legal advice on the advantages & disadvantages to you both of signing the agreement... To minimise costs, if you can come to a detailed agreement between the two of you (possibly with the help of a mediator) that covers exactly what you want & present that to your respective lawyers, that will help reduce time & costs.

Advantage of a BFA is it can be much quicker then consent orders, & is not given the scrutiny that a court registrar is required to give.

 

[Destiny]

Thankyou for reply
I thought of a binding financial agreement but is their specific forms to be completed?
Also with mediators are there specific people required?

 

[Rod]

You can enter into your own agreements without court and lawyers.

Where the separation is amicable many people do not need legal assistance, however any agreement is likely not enforceable at court if there is later a problem of some kind. Lawyers typically only get involved where there are disagreements, or one party is risk averse and wants lawyers involved.

 

[Atticus]

I thought of a binding financial agreement but is their specific forms to be completed?
Also with mediators are there specific people required?

No specific forms ... There are BFA templates available for sale on line from various firms ... You may be able to find an example via google search that will give you an idea of the areas that need to be covered.

If you need the agreement to be legally binding, you must both engage independent lawyers. Any other agreement won't be worth the paper it's written on if there is a later dispute or one party does not follow through with their agreed obligations.

The BFA needs to cover all areas relevant to finalising all property, assets & severing your financial relationship, not just the ones that you think are necessary. That's important so that one party can't come back at some point in time & attempt an application on an asset that was not covered, superannuation for example.

If you require a mediator, best to get one that deals with separated couples sorting out property division. Cheaper than a lawyer ... Can't provide legal advice but should be aware of the relevant laws & regulations.