peace of mind.
Do I actually need a Binding Financial Agreement?
While anyone can write down an agreement informally, you want a robust financial agreement that will be upheld and found enforceable in the event it is challenged.
Also known as a "pre-nupital" agreement, a Binding Financial Agreement ("BFA") can be entered into before, during or after a relationship. A BFA provides certainty and gives you control over your assets in the event of a relationship breakdown.
With upfront costs disclosure and a pragmatic approach, start the conversation with us today and take your next steps toward financial security without delay.
Let us help you today.
I just wished if I could have started my journey with Joshua, things
would have been a [lot] less painful.
... stop wasting your valuable time and money with other Law firms.
~ direct quote from another satisfied client.
You have worked hard for your assets.
DG Family Law will assist you to navigate and finalise your property division with your spouse, whether that be before, during or after your relationship. You can rest assured that your financial future is in safe hands when we formalise your agreement.
Binding Financial Agreement
Before Relationship (s90B)
If you are moving in together or getting married, a BFA allows you to detail the assets and liabilities of each party and the terms for dividing them in the event of a separation.
Such agreements are most popular for those entering a second marriage or who otherwise have signficant assets to protect at the commencement of a relationship.
If you are thinking of entering into a BFA before getting married, do not leave it to the last minute if you want it to be legally enforceable!
Binding Financial Agreement
During Relationship (s90C)
During your marriage or defacto relationship, a BFA allows you and your spouse to detail the assets and liabilties of your relationship and what should happen to them in the event of a realationship breakdown.
This agreement operates as a kind of insurance policy to give the parties peace of mind in relation to their assets as the relationship matures.
If your relationship is going well, now is the perfect time to have a conversation about your assets and what would happen in the unlikely event that you were to separate.
Binding Financial Agreement After Relationship (s90D)
If you are in the unfortunate position of experiencing a relationship breakdown, a BFA allows you to formalise a legally binding final property agreement
with your ex-partner.
This agreement can finalise a division of all assets, liabilities, superannuation interests and spousal maintenance rights, although it does not include parenting arrangements.
If you have an agreement with your ex-partner, we invite you to contact our office to make an appointment to formalise your agreement today.
Do I have to go to Court?
Besides Consent Orders, a Binding Financial Agreement (BFA) is the only other way to formalise a division of your assets and liabilities with your ex-partner.
A BFA is effectively a special contract specifically designed to facilitate the division of property upon the breakdown of a marriage or a de facto relationship. If you are able to do this well, you will avoid litigation and many difficult conversations!
Although you do not need to go to Court, both you and your partner will need to obtain seperate, independent legal advice before signing and finalising the agreement in order for it to be legally binding as per the Family Law Act 1975.
You will only need to go to Court in the future if the agreement is being enforced or if one party seeks to set it aside! There are many specific requirements for a Binding Financial Agreement to be considered binding. If there are omissions or mistakes in the agreement, this may be used as a basis for the agreement to be set aside if it is challenged in the future.
Do I need to use a Lawyer?
There are very strict legislative requirements that must be complied with in order for the Agreement to be held as binding and enforceable. As the agreement may be completely unfair, and still be legally binding, we strongly encourage you to seek legal advice before a final agreement is made.
In the absence of a lawyer, you will not have a BFA. If you want a legally binding agreement, you will need to consult a solicitor for independent legal advice before you sign and attempt to execute the agreement.
Both parties will need to sign the agreement, where the lawyers will also sign a statement confirming that legal advice has been provided on the effects, advantages and disadvantages of the agreement.
If you have already determined an agreement with your ex-partner, you may bring that agreement to a solicitor to provide advice, draft and formalise an appropriate Binding Financial Agreement.
The parties may enter into a Binding Financial Agreement before marriage (s90B), during marriage but before or after separation (s90C) or after divorce (s90D). Similarly, de facto couples are able to enter into a Binding Financial Agreement before (s90UB), during (s90UC) or after separation (s90UD).
Can I do a Consent Order?
A Consent Order is a written agreement that documents an agreed division of matrimonial assets for a marriage or a defacto relationship.
If you would like to utilise Consent Orders, the proposed property division must be within the range of entitlements the Court would consider "just and equitable" according to the Family Law Act 1975.
In addition to assets and liabilities, Consent Orders can also document your parenting agreement at the same time, in the same agreement. This cannot be achieved through a Binding Financial Agreement.
It is worth noting that you can also draft a Binding Financial Agreement at the start or during your relationship, whether you are married or de facto partners, to specify the division of assets and liabilities if the relationship were to irretrievably break down. This is the only legally binding avenue for you to make such an agreement under Australian law in the Family Law Courts.