Would you be prepared to drink snake venom?
Probably not.
But what if doing that simple act would stop you from dying from a snake bite?
You’d think twice, wouldn’t you?
And if you were in a location where snake bite was likely, you’d probably agree to swallow that drink if it guaranteed your chances of survival.
There are plenty of times in life where we choose to tolerate short-term discomfort in the hope of avoiding some future pain.
When it comes to business, occasionally you have to make decisions that feel uncomfortable, especially when that decision overflows into your personal life.
If you’re embarking on a new marriage or moving in with a new squeeze, you might not want to think too deeply about how that happy event may affect your livelihood. But this is precisely the time to consider the possible ramifications.
The truth is that if the relationship fails, married or de facto partners (of more than two years) gain rights that can impact the assets or liabilities you own personally or that you control through a business entity.
While it may be marginally uncomfortable to start a serious discussion with your new partner about financial what ifs, imagine how much more difficult it could be if the unthinkable separation occurs five years down the track and you discover that the business assets you’ve spent years building now form part of the property pool to be divided?
It’s not a pleasant thought, but there is a solution; and it is more palatable than drinking snake venom.
A “Binding Financial Agreement” is a written agreement that allows you to choose how to divide property and financial resources in the event of a relationship breakdown.
It can help you to protect your business by:
- Quarantining business assets from future claim;
- Protecting interests in businesses, companies, trusts;
- Quarantining superannuation from future claim;
- Coordinating and supporting your estate plans, so that family property passes as you wish;
It can also help you to protect a spouse partner from incurring business debt and allow you to specify ground rules for buying or owning property.
A binding financial agreement is a straightforward and inexpensive tool that will provide you and your partner with financial certainty.
Click here If you’d like to know more about financial agreements or here if you are looking for tips on how to talk to your partner about financial agreements.
