A binding financial agreement (BFA) is a legal document that sets out how a couple`s assets will be divided in the event of a separation or divorce. It is a legal agreement between two parties who have been in a de-facto relationship or marriage.
BFAs provide certainty and peace of mind to couples who want to protect their assets and avoid lengthy and costly legal battles in the event of a breakdown of their relationship. They are particularly useful for individuals who have significant assets, such as property, investments, or businesses, or those who have children from previous relationships and want to ensure that their assets are protected and distributed in a fair and equitable manner.
BFAs can address various financial matters, including property division, spousal maintenance, and child support. However, they cannot cover issues such as parenting arrangements or child custody, as these matters are determined by the Family Court of Australia.
A BFA can be entered into at any stage of a relationship, whether it is before, during, or after a marriage or de-facto relationship. However, it is important to note that a BFA can only be legally binding if certain legal requirements are met.
For a BFA to be legally binding, both parties must have received independent legal advice and have given their voluntary consent to the agreement. Additionally, the agreement must be in writing and signed by both parties.
It is important to seek the advice of an experienced family lawyer when considering a BFA. A lawyer can help you understand your legal rights and obligations, and ensure that the agreement is drafted in a way that is enforceable in court.
In conclusion, a binding financial agreement is a useful legal tool for couples who want to protect their assets and avoid legal disputes in the event of a separation or divorce. However, it is important to seek legal advice and ensure that the agreement meets legal requirements to be binding.