Financial agreements are legally binding contracts that outline the terms of financial arrangements between parties. These agreements can cover various aspects, such as loans, investments, or the division of assets in the event of a separation. They help clarify each party's rights and responsibilities, reducing the potential for disputes. In the context of relationships, financial agreements, often referred to as prenuptial agreements or postnuptial agreements, specify how assets will be managed or divided. These documents can protect individual interests and provide a clear framework for financial matters, ensuring both parties understand their obligations and entitlements.