Also known as a BFA, a Binding Financial Agreement is a legally binding document made before, during and after the course of a relationship, setting out the division of a couple’s assets in the event of a separation. It can also determine any maintenance and child support that may be paid by the primary money earner to the other person.
BFAs are can be entered into by couples planning to marry, who have their own personal assets they would like to protect. Couples in de facto relationships can also enter into a BFA, including those in same sex relationships.
While some people may have a negative view of BFAs at the commencement of a relationship, many couples simply want the assurance that they will get back what they brought to the relationship if the worst should happen.
BFAs can take the form of:
- Pre-nuptial agreements
- Post nuptial agreements
- Cohabitation agreements
- Separation agreements
- Divorce agreements
- Binding Child Support agreements
Preparing a Binding Financial Agreement
It is important that a BFA is drafted and certified by a lawyer, two lawyers in fact, for it to be considered “binding.”
For the agreement to be enforceable by a court the Family Law Act requires each person in the relationship to have their own independent lawyer provide legal advice on the agreement. There also needs to be full disclosure between the couple about their debts and assets, and both need to agree to the BFA.
Each party’s lawyer then signs certificates confirming their advice was given, including the advantages and disadvantages of the agreement for their client. A BFA creates the same obligations of a court order and can be enforced through the courts if necessary. BFA’s will resolve finally all financial affairs between a husband and wife.
Our Family Lawyers are experienced in the drafting of legally Binding Financial Agreements. We are here to provide you with the best advice on your position within the relationship should you seek such an agreement at the start, before getting married, updating an existing agreement during the relationship, or settling an agreement at the end of a relationship.
Contact us for more information about BFAs and how they would apply to your situation. Our experienced family lawyers on the Gold Coast who may assist are: