{"id":721,"date":"2022-01-21T13:34:38","date_gmt":"2022-01-21T13:34:38","guid":{"rendered":"https:\/\/goldman-lawyers.com\/online-law-communitya\/?p=721"},"modified":"2022-01-21T13:34:46","modified_gmt":"2022-01-21T13:34:46","slug":"full-court-of-family-court-confirms-there-can-be-two-types-of-financial-agreement-in-one-document","status":"publish","type":"post","link":"https:\/\/goldman-lawyers.com\/online-law-community\/full-court-of-family-court-confirms-there-can-be-two-types-of-financial-agreement-in-one-document\/","title":{"rendered":"Full Court of Family Court Confirms There Can Be Two Types of Financial Agreement in One Document"},"content":{"rendered":"\n<p><strong>Key Words<\/strong>:\u00a0Financial agreements; de facto partners;\u00a0Part VIIIA and Part VIIIAB financial agreement; the validity of\u00a0the certificate of legal advice<\/p>\n\n\n\n<p><strong>Introduction<\/strong><\/p>\n\n\n\n<p>In&nbsp;<em>Piper &amp; Mueller<\/em>&nbsp;[2015] FamCAFC 241 (18 December 2015) the Full Court of the Family Court (Ryan, Murphy &amp;&nbsp;Aldridge JJ) heard an appeal against Judge Willis\u2019 decision in&nbsp;<em>Piper &amp; Mueller<\/em>&nbsp;[2014] FCCA 2659.<\/p>\n\n\n\n<p>This appeal addressed the issue of having two separate agreements co-exist within one\u00a0document. It was put forward by Piper that a de facto agreement pursuant to s 90UC o the Family Law Act 1975 could not exist\u00a0within the same document as an agreement upon marriage pursuant to s 90B. Ryan &amp; Aldridge JJ\u00a0provided detailed reasoning to the contrary for dismissing Mr. Piper\u2019s appeal. They found that whilst\u00a0both agreements could be found to co-exist in the same document, it was clarified that only one\u00a0agreement would have an operative effect at any given time, therefore, upon marriage the de facto\u00a0agreement would cease to have an effect.<\/p>\n\n\n\n<p><strong>The reasoning at First Instance<\/strong><\/p>\n\n\n\n<p>At first instance, it was held that an agreement made under both s 90UC and s 90B of the <em>Family Law Act 1975<\/em>&nbsp;&nbsp;binding under s 90UJ (1A). Mr Piper unsuccessfully argued that the agreement could&nbsp;not have been validly made pursuant to both sections of the Act, therefore, the agreement was&nbsp;defective as the certified legal advice referred to the \u201cadvantages or otherwise\u201d of the agreement as&nbsp;opposed to \u201cthe advantages and disadvantages\u201d of entering into the agreement required by s 90UJ.<\/p>\n\n\n\n<p><strong>The reasoning at the Appeal<\/strong><\/p>\n\n\n\n<p>Ryan &amp; Aldridge JJ expressed that there was no apparent issue between people being in a de facto\u00a0relationship and also contemplating marriage.\u00a0\u00a0Subject to certain provisions of the <em>Family Law Act<\/em>\u00a0it was possible to\u00a0have a single agreement deal with the distribution of their assets upon the breakdown of their de facto\u00a0relationship or the ending of their subsequent marriage. \u00a0Both judges were, however,\u00a0of the view that financial agreements under Parts VIIIA and VIIIAB are different.<\/p>\n\n\n\n<p>It was evident in this case the parties were in a de facto relationship and accordingly entitled to enter\u00a0into a financial agreement under s 90UC. In addition to this, they were contemplating marriage which\u00a0further entitled them to enter into a binding financial agreement pursuant to s 90B. The pivotal fact in\u00a0relation to these circumstances is that the two financial agreements can exist concurrently and in one document.<\/p>\n\n\n\n<p>This was reinforced by the fact that only one of these financial agreements could have an operative\u00a0effect at any one time. This is demonstrated as the s 90B financial agreement would operate in the\u00a0event of a marriage breakdown in accordance with s 90B (2) (a), which requires a prior marriage to\u00a0have existed.<\/p>\n\n\n\n<p>Alternatively, an agreement under s 90UC ceases to be binding on parties getting married\u00a0in accordance with s 90UJ (3). Ryan &amp; Aldridge JJ expressed the view that it is possible for both\u00a0agreements to co-exist, however, upon entering in to a marriage, the operation of the de facto\u00a0agreement pursuant to s 90UC becomes null and void, leaving the s 90B financial agreement\u00a0operational. This indicates that the two agreements are complementary as opposed to exclusionary as\u00a0both may be binding on parties at the time of execution, however, only one can have an operative effect\u00a0at any given time.<\/p>\n\n\n\n<p><strong>Decision at the Full Court<\/strong><\/p>\n\n\n\n<p>Ryan &amp; Aldridge JJ further addressed the issue of providing different types of advice in accordance\u00a0with each agreement. They were both of the views that there was no reason why both types of advice\u00a0could not be given to a party prior to signing a document containing both s 90UC and s 90B\u00a0agreements. Murphy J delivered different reasoning but agreed that \u201cnothing within the legislation\u00a0precludes a financial agreement from including both s 90B and s 90UC agreements\u201d. On this basis,\u00a0the appeal was dismissed with costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Words:\u00a0Financial agreements; de facto partners;\u00a0Part VIIIA and Part VIIIAB financial agreement; the validity of\u00a0the certificate of legal advice Introduction In&nbsp;Piper &amp; Mueller&nbsp;[2015] FamCAFC 241&hellip;<\/p>\n","protected":false},"author":1,"featured_media":693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Full Court of Family Court Confirms There Can Be Two Types of Financial Agreement in One Document - Online Community Goldman Lawyers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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