When it comes to binding financial agreements, many people assume that once signed, the agreement is set in stone and cannot be changed. However, there are certain circumstances where the agreement can be set aside.
A binding financial agreement is a legal document that outlines how assets, liabilities and financial resources will be divided in the event of a separation or divorce. The agreement must be signed by both parties and each must obtain independent legal advice before signing.
Grounds for setting aside a binding financial agreement can vary depending on the circumstances, but generally include:
1. Non-disclosure or fraud: If one party has failed to disclose all assets or liabilities, or has deliberately provided false or misleading information, the agreement may be set aside.
2. Duress or undue influence: If one party was coerced or pressured into signing the agreement, it may be set aside. Undue influence can occur when one party holds a position of power over the other, such as when one party is significantly older or has greater financial resources.
3. Unconscionable agreement: If the agreement is grossly unfair to one party and they were not fully aware of the implications of the agreement, it may be set aside. This can occur when one party is financially dependent on the other, or when one party has significantly greater bargaining power than the other.
4. Material change in circumstances: If there has been a significant change in circumstances since the agreement was signed, such as a change in financial circumstances or a change in the care arrangements for children, the agreement may be set aside.
It is important to note that setting aside a binding financial agreement can be a complex and costly process, and should only be done in certain circumstances. It is always recommended to seek independent legal advice before making any decisions regarding a binding financial agreement.
In summary, while binding financial agreements are intended to provide certainty and security for both parties in the event of a separation or divorce, there are circumstances where the agreement can be set aside. Grounds for setting aside an agreement include non-disclosure or fraud, duress or undue influence, unconscionable agreement, and material change in circumstances. It is important to seek independent legal advice before making any decisions regarding a binding financial agreement.
