Reviewing a Financial Agreement in a High Net Worth Relationship

June 16, 2026

Financial agreements are often viewed as straightforward documents designed to protect assets before or during a relationship.

In reality, the effectiveness of a Financial Agreement depends entirely on the quality of its drafting, the accuracy of the financial disclosure underpinning it, and whether the document properly reflects the circumstances of both parties.

The Initial Situation

Our client contacted Nardi Lawyers after being presented with a Financial Agreement prepared by a lawyer on behalf of their de facto partner.

The parties were in a long-term de facto relationship involving significant personal and business assets, including:

• Real property holdings
• Investments
• Substantial savings and other financial assets

The agreement had already been drafted by the other party’s solicitor and our client required independent legal advice prior to signing.

Reviewing the Proposed Agreement

Upon detailed review of the draft agreement, we identified a number of significant concerns.

While the document was presented as a comprehensive asset protection mechanism, critical clauses necessary for our client’s protection had not been included.

In particular, the proposed agreement did not adequately address:

• The treatment of certain pre-existing assets held by our client
• Our client’s financial contributions during the relationship
• Mechanisms for dealing with future disputes or asset restructuring

In addition to those drafting concerns, the proposed division contemplated by the agreement did not accurately reflect the assets our client held at the time.

Certain assets and financial interests had either not been properly accounted for or were described in a way that did not appropriately protect our client’s existing financial position.

Identifying the Broader Risk

Situations like this arise more frequently than many people expect in high asset relationships. There is often an assumption that because a Financial Agreement has been prepared by a lawyer, it necessarily provides balanced or comprehensive protection for both parties.

In reality, these agreements are often drafted primarily from the perspective of the party who initiated the document.

Without careful independent review, clients can unknowingly expose themselves to significant long-term financial risk.

Strategic Advice & Negotiation

Following our review, we provided our client with detailed advice regarding:

• The legal effect of the proposed agreement
• The deficiencies in the drafting
• The risks associated with signing the agreement in its current form
• The amendments required to better protect the client’s interests

We subsequently engaged in negotiations regarding amendments to the proposed terms to ensure the agreement more accurately reflected the parties’ actual financial circumstances and appropriately protected our client’s position.

The Importance of Independent Legal Advice

At Nardi Lawyers, we regularly advise clients in relation to Financial Agreements involving:

• High net worth relationships
• Complex asset structures
• Business and investment interests
• Asset protection considerations

Our focus is not simply on reviewing whether an agreement is legally valid. We also assess whether the document practically and commercially protects the client’s interests both now and into the future.

In this matter, what initially appeared to be a routine request for independent legal advice ultimately involved identifying substantial deficiencies in the proposed agreement and taking steps to protect our client from potentially significant financial disadvantage.

This case highlights the importance of obtaining careful legal review before agreeing to the terms of any Financial Agreement.