When Do You Need Independent Legal Advice (ILA) in Australia?

* SMSF, LOAN, DIVORCE, RELEASE AGREEMENT, COMMERCIAL TRANSACTIONS *

Helping you protect your rights before you sign

Independent Legal Advice (ILA) is when you meet with your own lawyer—separate from the other party’s lawyer—to understand the legal effect, risks, and consequences of a document before you sign it.

 

In many situations, it’s not just a good idea—it’s required by law or by the other party (such as a bank or lender).

Need Personalised Consultation?
We Are Just A Click Away

Common Situations Where Independent Legal Advice (ILA) is Needed

Independent Legal Advice is essential in situations where you are taking on serious legal or financial obligations. Below are the most common examples in Australia.

1. Guarantees & Indemnities

  • For example, when signing as a guarantor for someone else’s loan or business debt.

  • In addition, when providing security such as your home for another person’s or company’s borrowing.

  • Similarly, this applies to third-party mortgage arrangements.

2. Family Law – Binding Financial Agreements (BFAs)

  • “Pre-nups” signed before marriage or a de facto relationship.

  • Agreements made during a relationship to manage assets and liabilities.

  • Separation or divorce property settlement agreements.

  • Importantly, under the Family Law Act, each party must receive independent legal advice for the agreement to be valid.

3. Loan, Mortgage, and Finance Documents

  • Signing personal guarantees for company or business loans.

  • Entering into reverse mortgages or equity release products.

  • SMSF borrowing arrangements (LRBAs) with personal guarantees.

4. Business & Commercial Transactions

  • Director or shareholder guarantees.

  • Shareholder agreements that restrict or waive rights.

  • Sale of business contracts that include personal liability or restraint clauses.

5. Settlement & Release Agreements

  • Employment settlement agreements.

  • Commercial dispute settlements.

  • Personal injury settlements where required by law or insurance terms.

6. High-Risk or Complex Contracts

  • Long-term leases that require a personal guarantee.

  • Any agreement that transfers significant personal liability or waives important rights.

Why Independent Legal Advice Matters

Independent Legal Advice:

 

  • Firstly, ensures you understand exactly what you are signing.

  • Secondly, confirms you are signing voluntarily and without pressure.

  • As a result, it protects against future claims of duress or misunderstanding.

  • Finally, in many cases, it is a legal requirement for the document to be enforceable.

Our Process at Auzworld Lawyers

We aim to make the process simple and stress-free for clients across Australia.

 

  1. Booking the Meeting – A 15–30 minute appointment is scheduled, either via secure video link or in person.

  2. Identity Verification – Your Driver Licence and Passport are sighted during the meeting, and copies are kept for our records.

  3. Clear Legal Explanation – We explain the meaning and consequences of your document in plain English.

  4. Your Questions Answered – You have the opportunity to ask questions and receive clear, practical answers.

  5. Issuing the Certificate – We prepare and send your Independent Legal Advice Certificate by email.

  6. Document Signing – If required, documents are sent digitally for signing.

Book Your Independent Legal Advice Today

Whether you are a guarantor, signing a mortgage, or entering into a binding financial agreement, we can help. Contact Auzworld Lawyers to book your independent legal advice appointment with Manmohan Makkar, Solicitor, and have your certificate issued the same day.

 

The above information is for general guidance only and does not constitute legal advice. For tailored advice, consult a registered migration agent or qualified legal professional.

Book Your Consultation