Navigating Financial Agreements and Intergenerational Wealth in Family Law

In the evolving landscape of family law, Financial Agreements have become a vital tool for families seeking to protect wealth across generations. These agreements—commonly referred to as prenuptial or intergenerational agreements—offer a structured approach to managing property, income, and financial resources in the event of relationship breakdowns.

Since their introduction for married couples in 2000 and de facto couples in 2009, Financial Agreements have provided a pathway for parties to self-regulate financial outcomes without court intervention. To be binding, each party must receive independent legal advice regarding the agreement’s impact on their rights and the advantages and disadvantages of entering into it.

Why Families Choose Financial Agreements

Families often seek Financial Agreements to:

• Preserve multigenerational wealth and family businesses
• Protect assets acquired independently or through inheritance
• Avoid litigation and uncertainty in the event of separation
• Ensure succession planning aligns with family values and expectations

These agreements are particularly relevant in second marriages, where asset protection for children from previous relationships is paramount, and in cases involving significant disparities in wealth or anticipated inheritances.

Initiating Conversations Around Wealth Protection

Discussing Financial Agreements with adult children can be sensitive. Best practice involves early, open conversations—ideally facilitated by trusted advisors such as family accountants or legal professionals. Family offices and constitutions can help normalize these discussions, setting expectations for prenuptial agreements across generations.

Transparency is key. Full disclosure of assets and income by both parties is essential to ensure enforceability and reduce the risk of future challenges. Agreements presented close to a wedding or cohabitation date, or without proper translation for non-English speakers, are vulnerable to being set aside by courts.

Cross-Border Considerations

In an increasingly globalised world, families often hold assets across multiple jurisdictions. While Financial Agreements are binding in Australia, international enforceability requires careful review of foreign laws. Where necessary, parallel agreements or legal advice from practitioners fluent in relevant languages may be required.

Estate Planning Tools for Wealth Protection

Beyond Financial Agreements, families may consider:

• Discretionary and testamentary trusts
• Superannuation binding nominations and agreements
• Life estates, insurance, and enduring powers of attorney

These mechanisms can complement Financial Agreements, offering additional layers of protection and flexibility in estate planning.

Clarifying External Contributions: Loan or Gift?

In family law disputes, contributions from parents or grandparents often raise questions about whether funds were gifted or loaned. Proper documentation, such as written loan agreements with clear repayment terms, is critical. Without such evidence, courts may treat contributions as gifts, affecting property settlements.

July 2025

Paul Fildes is an Accredited Family Law Specialist and Fellow of the International Academy of Family Lawyers (IAFL). He specialises in complex property litigation, Financial Agreements, and cross-border family law matters. Paul is ranked as a Preeminent Family Lawyer in Australia by Doyle’s Guide and leads Taussig Cherrie Fildes, a First Tier firm in Victoria.