Understanding Financial Agreements
Jamie Lee Pouwhare • October 7, 2025
A financial agreement is a formal document made between couples in a marriage or de facto relationship, setting out how finances and assets will be handled. In some ways, a financial agreement is similar to what some people would call a "prenup", but can be made before, during or following the end of a relationship.
What Issues Can Be Covered
These agreements may outline arrangements for:
- The division or sale of property
- The way in which parties to an agreement will split or retain their superannuation, and
- Ongoing financial support such as spousal or child maintenance
They do not cover parenting matters or decisions about children's care, as those fall under separate legal processes.
Timing of a Financial Agreement
Couples have the option to enter into a financial agreement:
- Before a relationship becomes formalised (for example, prior to marriage)
- During the relationship
- After separation or divorce
Who is Eligible?
A financial agreement can be used by:
- Married couples
- Same-sex couples
- De facto partners
Making the Agreement Binding
To ensure enforceability, both parties must:
- Obtain independent legal advice and financial advice
- Properly sign the agreement
This safeguard ensures fairness and full understanding of the terms.
Why Enter into One?
The purpose behind a financial agreement varies:
- During a relationship - to clarify how assets will be divided should the relationship end
- After separation - to avoid costly and stressful court proceedings and provide certainty
These agreements may provide peace of mind, reduce disputes, and save both time and money. A Binding Financial Agreement can also save you and your former partner significant costs by potentially avoiding Stamp Duty on any property transferred between you.
Steps to Finalise the Agreement
Once negotiations are complete and both parties have obtained independent legal advice, signing the agreement makes it binding.
Alternatively, parties may also choose to apply for consent orders through the court, which formally validates the agreement and provides the same enforceability as a court judgment.
If Your Partner Breaches the Agreement
If one party does not comply, Dawson Pouwhare Legal and Conveyancing can assist by negotiating enforcement or, where necessary, commencing court proceedings to ensure compliance.
Setting Aside of Cancelling an Agreement
A financial agreement may be altered or invalidated if:
- There was fraud, non-disclosure, or undue pressure at the time of the signing
- The agreement was created to defeat creditors
- A significant change in circumstances creates hardship (e.g. a child's injury or care needs)
- The terms have become impractical or unenforceable
In such cases, the court has the power to set aside or vary the agreement.
Why Work With Dawson Pouwhare Legal and Conveyancing?
Because of their technical nature, financial agreements require experienced legal drafting and advice. Our team can:
- Explain your rights and obligations clearly
- Negotiate terms with your partner or their lawyer
- Draft agreements that comply with strict legal requirements
- Work alongside financial experts where additional advice is needed
If an agreement is disputed or terms break down, we can also guide you through court options.
Contact Our Family Law Team
If you are considering a financial agreement, or if you are unsure about one you have already signed, Dawson Pouwhare Legal and Conveyancing can provide tailored advice.
Speak with one of our experienced family lawyers today to dicuss the best way forward. Contact us today on (02) 4954 8666.
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When a marriage or de facto relationship ends, dividing property can be stressful and expensive. One key cost that separating couples in New South Wales should be aware of is stamp duty. Fortunately, under the Duties Act 1997 (NSW), there are stamp duty exemptions for property transfers after separation that can save you thousands of dollars. Stamp Duty Exemptions for Marries Couples and De Facto Relationships Under Section 68 of the Duties Act 1997, stamp duty is not payable on the transfer of matrimonial property if the transfer is made: To a party to the marriage; or To a child (or children) of either party. A similar exemption also applies to the breakdown of a de facto relationship under sections 68(1A) and 68(2). However, to qualify for the exemption, the transfer must be documented: Under a Binding Financial Agreement (prepared in accordance wth the Family Law Act 1975 (Cth)), or Through an order of the Court This ensures the transfer is legally valid and recognised by Revenue NSW. Motor Vehicle Transfers After Separation Stamp duty exemptions also extend to motor vehicle transfers where (s267(6)): The vehicle was registered in the name(s) of the parties in the marriage or relationship; The vehicle formed part of the matrimonial property; The transfer occurred under a Binding Financial Agreement or Court Order; and The Chief Commissioner is satisfied the transfer was made to divide property following the breakdown of the marriage or de facto relationship. Why These Exemptions Matter The savings can be susbtantial. For example, with the median house price in Newcastle and surrounding areas being around $940,000 - the stamp duty payable would ordinarily be aroound $37,000. By properly documenting the transfer under a Binding Financial Agreement or Court Order, couples can avoid this cost entirely. While preparing a Financial Agreement or obtaining Court Orders involves legal fees, these are usually far less than the stamp duty payable, making it a financially smart decision. Current NSW Stamp Duty Rates
Buying or selling property is one of the most significant financial decisions you will ever make. It’s also a process filled with legal complexities, from contracts and settlement deadlines to dealing with banks and government authorities. While many people consider engaging a licensed conveyancer, it’s important to understand the benefits of choosing a solicitor to guide you through the process—and beyond. The Difference Between Solicitors and Conveyancers A conveyancer is licensed to handle straightforward property transactions. Their scope is limited to conveyancing matters such as preparing the Contract for Sale, arranging settlement, and ensuring property title transfers correctly. A solicitor, on the other hand, can do everything a conveyancer does—but with the added benefit of broader legal training and experience. This makes a solicitor uniquely placed to identify risks, handle unexpected complications, and provide holistic legal advice tailored to your circumstances. Benefits of Using a Solicitor for Property Transactions 1. Comprehensive Legal Knowledge Property transactions often involve more than just paperwork. Issues such as easements, caveats, family law disputes, or complex loan structures may arise. A solicitor can not only flag these risks but also advise on the best way to protect your interests. 2. Representation in Legal Disputes If a transaction becomes contentious—such as a breach of contract or misrepresentation by a vendor—a conveyancer cannot represent you in court. A solicitor can step in immediately to provide legal advice, negotiate on your behalf, and, if needed, represent you in proceedings. 3. Tailored Advice Beyond the Sale Buying property often raises questions about broader legal planning. For example, you may want to ensure your new asset is properly protected in your estate planning documents or review whether it should be purchased in a trust or company structure. A solicitor can integrate your conveyancing with these wider considerations. How Solicitors Add Value Beyond Property Law When you engage a solicitor for your property transaction, you’re also building a relationship with a professional who can assist in other critical areas of life, such as: Wills and Estate Planning: Ensuring your property and other assets are distributed according to your wishes under the Succession Act 2006 (NSW). This can include preparing a Will, Enduring Power of Attorney, and Enduring Guardianship. Family Law Matters: Providing advice if property is being purchased in the context of a de facto relationship, second marriage, or following separation. Commercial and Leasing Matters: Assisting if you are purchasing investment property or need guidance on retail and commercial leases under the Retail Leases Act 1994 (NSW). Why This Matters for You Engaging a solicitor gives you peace of mind. You know that not only is your immediate property transaction handled with precision, but your broader legal needs are also considered. This integrated approach means fewer risks, more protection, and a trusted advisor you can rely on long after settlement. Conveyancers can assist with the basics of a property transfer. Solicitors, however, provide a complete service—combining conveyancing expertise with wider legal support, ensuring your interests are protected now and into the future. If you’re buying or selling property—or want to update your Will or estate plan—our team at Dawson Pouwhare Legal & Conveyancing is here to help. Contact us today for tailored advice you can trust.
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If you've recently lost a loved one and have been names as an executor in their Will, you may be wondering: how long does probate actually take in NSW? While probate is just one part of administering a deceased estate, understanding the timeline - and potential delays- can help reduce stress during this difficult time and ensure you meet your responsibilities correctly and efficiently. At Dawson Pouwhare Legal & Conveyancing, we guide executors every step of the way. Here is what you need to know.
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Purchasing your first home is an exciting milestone, but it also involves navigating complex financial and legal considerations. Fortunately, the NSW Government prvoides a range of stamp duty concessions and grants designed to support eligible first home buyers and reduce the upfront costs of entering the property market. This article outlines the key assistance schemes available in 2025, including eligibility critera, application processes, and legal considerations.
If you're a business owner in New South Wales (NSW) preparing to lease a premises, it's essential to understand whether your lease is classified as retail or commercial. This classification significantly affects your legal rights and protections as a tenant - including disclosure requirements, lease terms, and financial obligations. Misunderstanding the lease type can result in missed entitlements or unexpected costs. Here's what every prospective tenant should know before signing on the dotted line. Retail vs. Commercial: What's the Difference? The main distinction lies in the nature of your business and whether the Retail Leases Act 1994 (NSW) applies. A retail lease typically applies to premises used for selling goods or services directly to the public (e.g. beauty salons, cafes, clothing stores, takeaway outlets, or tenants in a shopping centre) A commercial lease applies to non-retail uses like offices, industrial warehouses, and storage spaces. If your lease falls under the Retail Leases Act, you benefit from additional statutory protections - but many tenants are unaware of their entitlements. Does the Retail Leases Act 1994 (NSW) Apply to Your Lease? You are likely entering into a retail lease if: - Your business falls within a class of retail business listed in Schedule 1 of the Retail Leases Regulation 2022 (NSW). - The premises are under 1,000 square metres. - The lease is not for certain excluded uses (such as ATMs or storage-only premises) If in doubt, always seek legal advice before signing. Many tenants sign leases that should be classified as retail without receiving the benefits of the Act. Why Classification Matters: Key Protections for Tenants Under a Retail Lease If your lease is governed by the Retail Leases Act 1994 (NSW), you are entitled to significant protections that commercial tenants may not receive: 1. Mandatory Disclosure Statement Before you sign, your landlord must give you a Disclosure Statement (Section 11). This outlines key lease terms such as rent, outgoings, and renewal options. If the landlord fails to provide this document (or if it is misleading), you may be entitled to terminate the lease within six months. 2. Minimum Lease Term of Five Years Under Section 16, a retail lease is automatically deemed to be for five years (even if a shorter term is written) - unless you voluntarily sign a certificate waiving this right. This gives tenants valuable security of tenure. 3. Limit on Security Bonds Security bonds in retail leases are capped at three months' rent (Section 16C), providing certainty and protecting your cash flow. The bond must be returned promptly after the lease ends, assuming there are no breaches. 4. No Landlord Legal Fees for Lease Preparation In retail lease, the landlord cannot pass on their legal costs for preparing the lease to the tenant (Section 14), which can save thousands in upfront costs. What If You're on a Commercial Lease? If your lease is not covered by the Retail Leases Act , you won't receive these protections - your rights and obligations will depend entirely on what is written in the lease. For this reason, getting the lease reviewed by a solicitor is crucial before you sign. Commercial leases often place a heavier burden on tenants in areas like: Responsibility for repairs and maintenance Contribution to outgoings (e.g. council rates, water, insurance) Limited notice periods for termination or relocation Don't Sign Until You Know Where You Stand Understanding whether you're entering a retail or commercial lease is more than a technicality - it directly impacts your legal rights, long-term costs, and business security. Need Clarity on Your Lease Type? At Dawson Pouwhare Legal & Conveyancing , we help tenants review and understand their leases before signing. Our Lease Classification Review Service ensured you don't miss out on the protections you're entitled to under NSW law. Call us today on (02) 4954 8666 or visit www.dawsonpouwhare.com.au to book a fixed-fee lease review.