Why should we formalise our financial agreement?
There are three primary (financial) reasons why you should formalise the agreement that you reach with your partner about finances, and do so properly, in a legal way.
- If you’re transferring a house or a car to your partner or vice versa, then stamp duty will not be payable on the transfer. This could save you up to tens of thousands of dollars.
- The financial agreement will be legally recognised and binding, meaning that you can enforce it.
- You and your partner cannot make a claim against one another into the future and try to get more assets. This means that if you win the lotto or receive an inheritance, then you can keep it free and clear of any future claim from your partner.
If you and your partner agree for there to be a superannuation split (being a payment from one person’s superannuation to the other person’s superannuation), then you have to formalise your agreement in a legally recognised way.
Emotionally, formalising your financial agreement provides couples with closure and certainty moving forward as to their financial independence. It can be both the end and beginning of a new chapter.