A binding financial agreement (BFA) can be a useful document in protecting assets prior to entering into a relationship or formalising an agreement at the time of separation. The document can involve how assets or liabilities are to be dealt with should separation occur.
BFA’s can apply to married couples or couples in a defacto relationship and can be drafted prior to the relationship, during the relationship or after separation. In order for a BFA to be legally binding, the document must be pursuant to the Family Law Act, it must be signed by both parties, and both parties are required to have independent legal advice. Also, each legal is required to provide their client with a letter of advice outlining the advantages and disadvantages of entering into the agreement.
As an experienced family lawyer, I have extensive experience in drafting binding financial agreements. BFA’s are most common in circumstances where there are significant assets in the matrimonial asset pool, or where one party has significantly more assets than the other party or where one party is expecting a future inheritance or wishes to protect a family business/investment. Also, in circumstances where a document is required to formalise financial arrangements at the time of separation.
Should you be contemplating entering into a binding financial agreement, contact me to discuss how such an agreement may benefit you.