When it comes to financial agreements, there are many different types. One of the most common, however, is known as a de facto financial agreement. This type of agreement can be incredibly useful for couples who are in a de facto relationship and are looking to protect their assets and finances.
So, what exactly is a de facto financial agreement? Essentially, it is a written agreement between two people who are in a de facto relationship (i.e. they are living together and are not married). The agreement outlines how their assets and finances will be divided in the event of a separation or breakup. This can include things like property, investments, and debts.
The key benefit of a de facto financial agreement is that it allows couples to make important decisions about their finances and assets while they are still on good terms. This can prevent potential disputes and legal battles down the road if the relationship were to break down.
An example of a de facto financial agreement might be as follows:
John and Sarah have been living together in a de facto relationship for three years. They decide to create a financial agreement to protect their assets and finances. The agreement states that if they were to separate, John will keep the house they bought together, and Sarah will keep the car she purchased before they started dating. They also agree to split any joint debts equally.
It`s important to note that a de facto financial agreement must be drafted and signed by both parties before it can be legally binding. It`s also recommended that each party seeks independent legal advice before signing the agreement.
In conclusion, if you are in a de facto relationship and are looking to protect your assets and finances, a de facto financial agreement could be a great option for you. By outlining these important details in writing, you can ensure that you and your partner are on the same page and can avoid potential disputes down the road.