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ARTICLE · 07 JULY 2010

Binding Financial Agreements - "A Plague on Both your Houses!"

This article concerns other difficulties with financial agreements and the recent case of Kostres & Kostres [2009] FamCAFC 222.

AustraliaReal Estate and Construction

When poor Mercutio gets embroiled in a familial punch-up between the Montagues and the Capulets, he is the one that gets stabbed and dies. Before collapsing off-stage, he curses the fight that brings about his untimely demise. Such a curse might also fall from unsuspecting and unprepared family lawyers who prepare financial agreements for couples who may, perhaps years or decades into the future, end up warring like Romeo and Juliet's mum and dad.

Much blood and ink has already been spilt in dire admonitions and imprecations concerning compliance with the formal requirements necessary to bind the parties to financial agreements set out in section 90G of the Family Law Act 1975. We see no coincidence that the case which demanded "strict compliance with the statutory requirements" is named Black. Thankfully, recent amendments to the compliance regime have ameliorated the legal gymnastics required to ensure an agreement is binding. Having said that, as Paul Doolan notes

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