Relationship Property Contracting Out Agreements
Contracting Out and/or Prenuptial agreements need to be carefully constructed; they fall apart if one of you forgets to ensure property isn't financially intermingled following signing of the Agreement.
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.
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.