INFORMAL AGREEMENTS
An informal agreement is generally reached between two parties before seeking legal advice.
An informal agreement is generally reached between two parties before seeking legal advice.
Generally speaking, informal agreements are not backed by “the force of law” and can thus be quite hazardous to rely on. Or put another way, they are only slightly more formal than a verbal agreement, take these scenarios for example:
In short, these examples demonstrate an informal agreement is not able to be legally enforced until it goes through the family court and is “stamped off” by a judge. This is why you should formalise your informal agreements to be legally binding. Until you make a binding agreement you may still be liable for the debts the other party generates as you haven’t yet achieved financial separation.
You may need a different document, such as a binding financial agreement which sidesteps the family court and requires both parties have sought out a lawyer who can provide a certificate of independent legal advice.
Informal Agreements are a minefield and a good family lawyer should be able to point out the consequences of potential scenarios that could trip you up in future and cost effectively lay out your options to mitigate those risks. We believe, when it comes to Informal Agreements, the two most important things a family lawyer can offer you is knowledge of agreements to avoid court altogether, or offer experience in court formalising binding agreements.
If you would like to discuss your options regarding Informal Agreements call us today for an appointment.
Call 0400 714 714