Relationships are not just about love, sex, and emotions. It can be so much more like building the future with the one you love. It involves money and finances that should be well-thought and planned. Both parties in the relationship have, at some point, started thinking about their future together. Some even make joint bank accounts to take their relationship to another level. You may also see money agreement templates.
The financial agreement is a lengthy document that breaks down how much you should allow for something and how to divide your money. This document is also used for married couples, cohabiting couples, and same-sex couples. The agreement is entered by couples before they marry, during their marriage and after they separate or divorce. You may also see payment agreement templates.
Project Financing Agreement
What To Include In Financial Agreement
The writing process for financial agreement takes a lot of legalities and talking to do. It is a lengthy process and both parties should consult a lawyer. Any agreement should be in accordance with the law. You may also see agreement letter templates.
In drafting the financial agreement, these considerations should be written and included:
1. Combination of wages.
You and your partner should decide if you both want to combine your wages once the agreement is in full effect or keep it separate for other purposes. Combining wages can help you manage your money better. Keeping your wages separate from each other allows you to track what you spend. You may also see loan agreement templates.
2. Division of money.
This part is about dividing the money that you both earn. It can be divided in a weekly, monthly, or in an every two-week basis. This money should only be allotted for the expenses in the house and other important matters. You and your partner should talk about how much you would contribute and how you are going to split the money. You may also see sponsorship agreement templates.
3. Paying the debt you already have.
Debts are inevitable, especially when you need a decent home and don’t have the financial means to do so. When you already have a debt in the bank and you’re joining a financial agreement, there is a way on how to still pay the remaining debt while being faithful to the agreement. Some money may be allotted for paying the debt or you have to do it yourself. You may also see donation agreement templates.
4. Acquiring properties and bank accounts.
At some point in your relationship, you begin buying properties together and even having a joint bank account. The financial agreement will tell you what to do with these properties and accounts once it is effective. In the case of properties, it is usually transferred under the name of the other party or vice versa. Same goes for bank accounts. The ownership can be under one party’s name only. You may also see agreement templates in PDF.
5. Spousal maintenance.
Some relationships are not bound to last forever or even get close to marriage. Several factors can be attributed to the end of a relationship, such as falling out of love, parental interference, third parties, pride and petty misunderstandings. When you are in a financial agreement and the relationship suddenly ends, take note if there are monetary maintenance to be given and done. If there is, comply to each one of it to avoid trouble.
6. The fate of the agreement.
When unmarried couples enter a financial agreement and intend to marry in the long run, the agreement will be subjected to changes. Anything can happen to the agreement when marriage enters the picture. You may also see facility agreement templates.
7. Financial support for children.
The financial agreement has a section where the support and custody of the couple’s children are included. There is a list of things to be done once a couple who have children ends their relationship. The children will be in the custody of either parent as the other party provides support for them. You may also see management agreement templates.
Business Loan Finance Agreement
General Obligation Financing Agreement
Types of Financial Agreement
Financial agreements have more than one kinds. But nevertheless, it is still an agreement worthy of entering when you want your finances and properties to be managed well. You may also see incentive agreement templates.
1. Cohabitation Agreement
The cohabitation agreement is for unmarried homosexual and heterosexual couples who have chosen to live together. Their agreement includes a set of rules that are pretty much fair for the both of them. It covers paying a mortgage, working out on child support and other benefits married couples have.
2. Prenuptial Agreement
For couples intending to marry, the prenuptial agreement lays out all the responsibilities of the couple and the clear and defined ownership of assets when the marriage fails. In this agreement, the assets can be forfeited in cases of infidelity and adultery. It also includes grounds for support in the event of divorce.
3. Postnuptial Agreement
Postnuptial agreements are written on and agreed by the couple after the couple gets married. It is pretty similar to a prenuptial agreement and includes provisions in the event of divorce or marriage failure. Financial support for children is also included in this kind of agreement.
4. Separation Agreement
There is still an agreement most couples sign in to when their relationship comes to an end. It bears the same setup as the postnuptial agreement, as it mentions financial support and custody on children and spousal maintenance. Joint, family and marital assets are also being tackled in this separation agreement. This emphasizes on who gets what after the couple parts ways.
Master Financing Agreement
Pros and Cons of Financial Agreement
Financial agreements have some pros and cons couples should be familiar of. Each one should be understood and thought well before putting their hands on the agreement. Here are some of them:
1. Provide assurance.
The financial agreement provides assurance for both parties that their finances are protected and well taken care of when the agreement becomes effective. For people who have been through separation and divorce, it is also an assurance that they would get something out of the agreement. Paying for fees in the event of a divorce can cost so much. You may also see sample vendor agreement templates.
2. Manages finances and properties well.
This agreement has a set of provisions that allow you to manage your properties well. It also includes how you are going to use these properties and when you should use them. You may also see investment agreement templates.
3. Protection and turning over of assets.
Your assets are surely protected in this kind of agreement. It also has some set of rules that apply when the asset is intended to be turned over. The financial agreement can also serve as protection for the inheritance of your children when you die. You may also see simple loan agreement templates.
4. Have rules on who pays the bills.
The financial agreement sets out rules on who pays the bills and whose name will be used when you acquire properties and have a joint savings bank account. Sometimes, you still use your own names when acquiring properties despite the agreement. These rules should be compiled with since it is written in the agreement. You may also see commission agreement templates.
5. Fair distribution of assets.
It is not a guarantee that a relationship can last for a long time. To prepare for this part of the agreement, a section of it is allotted to what happens when the relationship ends. Assets are fairly distributed to both parties as stated in the agreement. You may also see deposit agreement templates.
6. Expensive drafting fees.
Hiring a lawyer while you draft the financial agreement can get expensive, much so when you hire separate lawyers to do such job. Drafting a financial agreement is not done overnight. It will eventually be revised and rewritten to make it understandable and professional to read. You have to save up some money for the lawyer’s fee. You may also see consultant agreement templates.
It is not too late for couples to enter the financial agreement. It can be entered at any point in their relationship. The financial agreement plays a huge role in managing your finances. Think it through before going into it. You may also see free agreement forms.