What is a binding financial agreement?
A binding financial agreement (BFA) is a legally enforceable written agreement between couples outlining the division of assets and financial matters in case of relationship breakdown. It can cover property, spousal maintenance, superannuation, and other financial resources.
To ensure compliance with the Family Law Act 1975, it’s imperative that both parties receive independent legal advice before signing anything.
How do we get a Prenuptial Agreement in Australia?
To create a prenuptial agreement in Australia, the parties must:
- Disclose their financial situation
- Reach an agreement on the terms of their BFA
- Have their BFA drafted by a family lawyer
- Seek independent legal advice regarding the proposed new financial agreement, as it is in their best interests and compliant with the Family Law Act.
- Sign the written agreement after independent legal advice
How much does a binding financial agreement cost?
The cost of a binding financial agreement varies based on complexity, the number of assets, and legal fees. It’s essential to seek legal advice to understand your financial situation and ensure the agreement meets all legal requirements, including full disclosure and compliance with the Family Law Act.
Are binding financial agreements worth it?
Binding financial agreements can be worth it if both parties want certainty and security over financial matters in case of separation. They provide a legally enforceable framework for property settlement, asset division, spousal maintenance and superannuation splits, preventing future disputes and protecting both parties’ financial interests.
What stages of a relationship can a Binding Financial Agreement be made?
A binding financial agreement can be made at various stages of a relationship, including before marriage (prenuptial agreements), during the relationship, or after separation. It can also be made for de facto couples and covers financial matters, spousal maintenance, and property division.
What can a binding financial agreement cover?
A binding financial agreement can cover asset division, spousal maintenance, child support, superannuation, and financial resources. It ensures both parties agree on financial matters and provides clarity in the event of separation or divorce, offering a legally enforceable framework to avoid court involvement.
Can an existing Financial Agreement be changed?
An existing binding financial agreement can be changed with the consent of both parties, provided that a new written agreement is created. Significant changes in circumstances, such as financial resources, spousal maintenance, or child care, may justify adjustments to the original agreement.
When can a court set aside a binding financial agreement?
A court can set aside a binding financial agreement in certain circumstances, such as non-disclosure of financial resources, lack of independent legal advice for either party, material change in circumstances, or if one party acted under duress. A court order may also occur if the agreement is deemed unfair or unenforceable.
Can you terminate a binding financial agreement?
Yes, a binding financial agreement can be terminated if both parties agree in writing or a court order is made to set aside the agreement. Termination typically occurs when the relationship ends or if there’s a significant change in financial circumstances or material matters.
What is a termination agreement?
A termination agreement is a written agreement between both parties that cancels or ends a previous binding financial agreement. It effectively removes the enforceability of the original agreement, and both parties must seek legal advice to ensure it complies with the Family Law Act.
