Relationship Property Contracting Out Agreements

Contracting Out and/or Prenuptial agreements need to be carefully constructed.

In Court, agreements can fall apart if one of you forgets to ensure separate property wasn't intermingled during the relationship.

Potential for intermingling

Intermingling; mixing salaries with separate property, using salaries to support separate property; naively using separate inheritances to support relationship property.

Additionally, if the separate property requires funding from a relationship property source some time in the future, intermingling occurs which could over-turn the prenuptial agreement.

Intermingling investigation

Forensic accounting analysis can be carried out to prove that relationship property assets have been intermingled with those contracted out assets; or haven't been intermingled after all.

Proper accounting treatment

By ensuring an accounting system is put in place at the time of the agreement; it would provide the evidence that either no intermingling occurred, or quantify the extent that there has been. This may ensure a quick settlement; hopefully avoiding the Courts, and a protracted legal case that may result in a larger percentage awarded as relationship property.

Check out the relevant link to the Act - Part 6 Contracting out.

Check out our successful case work.

Email Hugh Sutherland if you would like to discuss including an accounting plan in your contracting out agreement.