To increase the likelihood that your separation agreement will be valid and upheld by the courts in the event of a disagreement, it is important that both spouses are open and honest about their finances. When disclosing your assets and debts, the standard is full financial disclosure. This normally means that you give your spouse accounts under oath that display your assets and debts. It also means providing your spouse with validation documents for the values described in your annual accounts. However, Sadler v. Reynolds ( 2005) suggests that there may be situations that fall under a kind of “central house” between household and industry, which affects the weight of the presumption. In this case, there was the alleged contract between a journalist and a businessman who were friends. The marriage later broke down and the wife sued the husband for his failure to pay the promised payments. A “domestic contract” under the Family Law Act includes different types of agreements, before and after marriage, and separation, all intended to protect your interests and address all kinds of problems that may arise.
If both spouses obtain independent legal advice before signing a national contract, the risk of a spouse claiming not to have understood the nature or consequences of the contract decreases. It helps protect your agreement and increases the likelihood that it will be upheld by the court if your spouse does not want to follow the agreement or tries to cancel the agreement. The willingness of an innocent party to go to court to enforce an unconsused agreement should not be considered conclusive as to the intention to create legal relations.