Our Family Law Lawyers are always pleased to hear when parties who have separated have reached an agreement themselves or with the assistance of a mediator.
However, once the agreement has been reached parties should seriously consider formalising the agreement to ensure it is legally enforceable.
Here are a few reasons why:
- To ensure the agreement is secured as a party can withdraw consent at any time if the agreement is not legally formalised.
Yes, this means that a party can agree, sign and commence actioning the terms agreed upon, but they could change their mind at any point. Most agreements, if not formalised properly are not legally binding.
- To ensure clarity of the agreement reached.
Formalising the agreement terms with the assistance of a Family Law Lawyer may assist in clarifying the agreement reached and could draw to your attention other matters of relevance that have not yet been considered in the agreement reached.
- To protect yourself from any future claims that may arise and to protect assets you accumulate post separation.
If you formalise your agreement reached, we generally will add an order that states no further claims can be made against you. Further, your financial severance is evidenced in the legally enforceable agreement reached. This does not always cover any spouse maintenance claim.
- To ensure eligibility of a stamp duty exemption or roll over relief.
You may be eligible for a stamp duty exemption if you are transferring a property between yourselves as part of your agreement. In the event of an investment property roll over relief may be provided. We suggest you speak with an accountant in relation to these benefits.
- To provide you with enforcement rights in the event one party does not cooperate or comply with the agreement.
If your agreement if Ordered, is legally enforceable, and you may approach the court to seek the enforcement of the agreement. We suggest you speak to our family law lawyers before seeking court enforcement to assist in the most effective outcome.
- To ensure any agreement reached can be fulfilled.
Orders that bind a third party such as the trustee of a superannuation fund require orders to be drafted in a particular manner due to the relevant legislation to ensure that they can comply with your agreement.
Our Family Law Lawyers can assist you with formalising your agreement.
