Mums – please note this is a mum’s advice, and not professionally verified. Therefore always get individual legal/financial advice from a professional
Hi ladies, after reading a members post I thought I’d give some info for those of you entering or in relationships after separation to protect your assets, homes & financial security of you & your children.
These things will ensure YOUR asset pool stays securely in your hands or the hands of your children should anything happen to you.
A Binding Financial Agreement (BFA)
1. If you own your own home, prior to cohabitation you can ask your new partner signs this form (drawn up by a lawyer) to ensure the home stays your property & stop them having claim to your home/assets & chattels.
You can stipulate a time frame that the relationship must endure before your partner can have any claim against you i.e. after 10-20yrs of THEIR mutual contribution to the relationship asset pool they may be entitled something e.g. half or a percentage.
1. You will need to name an Executor (the person you trust completely to handle the paperwork & communications with lawyers/courts, financial institutions & superannuation/insurance providers – they will not necessarily be your beneficiary’s)
2. You will name your beneficiary’s ie your children &/or family members you want to receive your assets, insurances & chattels.
3. How/when the assets will be distributed – for young children those assets may be put into trusts until they become of age. You may allow release of some money for the raising of young children if you nominate someone to look after them in the untimely event of your death – things like living cost allowance, school, sports, college etc. You may want to gift certain things to some – stipulate who gets what & when.
4. You partner does not need to know about your Will.
A Power of Attorney (POA)
1. This document is binding & stipulates who is to handle your financial affairs/medical treatments/end of life requests should you become incapacitated to make those decisions yourself. Someone you trust.
2. They will not be able to access your financial assets or chattels for their personal use, but they will be able to make sure your treatments/bills/ability needs equipment is provided & paid for out of your asset pool.
3. You may want your partner to know about your POA if they are to be responsible for taking care of you.
Binding Superannuation Nomination (BSN)
1. This form is required to be renewed every 3 years but it ensures that no matter what happens to you, your nominated beneficiaries will be the only ones who get your super.
2. This also stops the government from being able to claim any unclaimed superannuation & super insurances in your name.
3. Your partner does not need to know about you’re BSN
Mums – I am not a lawyer, I’m a single mum who spent two years working as a law clerk – just protect yourself, your assets & your children’s futures. There are people out there that may wish to take advantage of you and know how the system can work in their favour. Be smart.