When it comes to financial agreements, Section 90C of the Family Law Act 1975 is an important element that individuals need to be aware of. This section outlines the process for creating and enforcing a financial agreement between two parties, typically in the context of a marriage or de facto relationship.

A financial agreement, also commonly known as a prenuptial agreement or a binding financial agreement, is a legal contract between two parties that outlines how their property and assets will be divided in the event of a separation or divorce. This agreement is designed to provide clarity and certainty, and can help to prevent lengthy and costly court disputes.

Section 90C provides the legal framework for creating a financial agreement, outlining the specific requirements that must be met for the agreement to be valid and enforceable. Some of the key requirements include:

1. The agreement must be in writing and signed by both parties.

2. Each party must receive independent legal advice before signing the agreement.

3. The agreement must include a statement from each party’s lawyer confirming that they provided independent legal advice.

4. The agreement must not be entered into under duress or undue influence.

5. The agreement must cover all of the property and assets that the parties own or may acquire in the future.

6. The agreement must be fair and reasonable at the time it is made.

Once a financial agreement has been created and meets all of the requirements of Section 90C, it is legally binding and enforceable. This means that if one party breaches the agreement, the other party can seek to have the agreement enforced through the court system.

It is important to note that financial agreements are not suitable for everyone, and they may not be appropriate in all situations. It is important for individuals to seek legal advice before entering into an agreement, and to carefully consider their specific circumstances and needs.

In conclusion, Section 90C of the Family Law Act outlines the legal requirements for creating and enforcing a financial agreement between two parties. While financial agreements can provide clarity and certainty in the event of a separation or divorce, it is important for individuals to seek legal advice and carefully consider their options before entering into an agreement. By doing so, they can ensure that their rights and interests are protected.