A binding financial agreement is a legally binding contract entered into by two parties who want to agree on how they will divide their property or financial resources. The agreement is usually entered into before or during a marriage or de facto relationship and is intended to provide certainty and predictability in case of a separation. However, there are instances where a binding financial agreement can be overturned.
The first thing to note is that a binding financial agreement must meet certain legal requirements to be valid. For example, the agreement must be in writing, signed by both parties, and witnessed by an independent third party. Additionally, both parties must receive independent legal advice before signing the agreement, and the lawyers must provide a certificate of advice.
Assuming the agreement meets these requirements, it can be overturned only in limited circumstances. The most common reasons why a binding financial agreement may be overturned include:
1. The agreement was obtained by fraud, duress, or undue influence: If one of the parties can prove that they were coerced or misled into signing the agreement, the court may declare it void.
2. The agreement is no longer practicable: If the agreement becomes impracticable due to a change in circumstances, such as a significant increase or decrease in the value of assets, the court may vary or set aside the agreement.
3. The agreement was not properly executed or drafted: If the agreement fails to meet the legal requirements for validity, such as not being signed or witnessed correctly, it may be deemed invalid.
4. One of the parties has suffered a material change in circumstances: If one of the parties experiences a significant change in their financial position, such as losing their job or incurring unexpected expenses, they may seek to have the agreement varied or set aside.
It`s worth noting that the court will only set aside a binding financial agreement in limited circumstances. The fact that one party no longer agrees with the terms of the agreement, or that their circumstances have changed in a way they did not anticipate, is not usually sufficient to overturn the agreement.
In conclusion, a binding financial agreement can be overturned, but only under certain circumstances. If you are considering entering into a binding financial agreement, it`s important to seek independent legal advice and ensure that the agreement is drafted and executed correctly. If you believe that an agreement should be overturned, you should seek advice from a family lawyer who can guide you through the process and help you understand your options.