Financial agreements and infidelity

by

Ed.

From cgw.com.au: Financial agreements allow couples to determine asset division upon separation, and some seek to include infidelity clauses that impose financial penalties for cheating.

However, enforcing such clauses poses significant challenges due to the lack of case law and potential ambiguity in the definition of infidelity, which may lead judges to find them invalid.

Including these clauses may jeopardise the validity of the entire agreement, making it advisable to avoid them due to the associated risks.

Filed under: SME & Family Business