Binding Financial Agreements
What is a Binding Financial Agreement?
A Binding Financial Agreement (BFA) is a contractual agreement which seeks to determine how your assets are to be divided in the event of separation. These agreements legally bind the parties, ensuring they are fulfilling their obligations detailed in such an agreement, much like a commercial contract. These agreements opt out of the Family Law Act 1975, which means that the Court does not see these agreements and does not make a determination about whether the Court believes the agreement reached is fair and equitable.
When Might I Need a Binding Financial Agreement?
You can enter into a Binding Financial Agreement at various stages of your relationship, including:
- At the commencement of your cohabitation relationship (also known as a ‘prenuptial agreement’);
- During the course of your relationship; or
- After the breakdown of your relationship.
Why Should I Opt for a Binding Financial Agreement?
Binding Financial Agreements that are drafted at the commencement of or during a cohabitation relationship are designed to eliminate the stress of parties engaging in lengthy settlement negotiations or litigation in the event that they separate in the future. Similarly, parties may choose to enter into a Binding Financial Agreement after they have separated if they wish to avoid the intervention or input of the Court. When entered into correctly, Binding Financial Agreements can provide flexibility in financially securing your assets for the future ahead.
In order for you and your spouse/partner or ex-spouse/partner to enter into a Binding Financial Agreement, you must each obtain separate and independent legal advice. One lawyer will draft the agreement and provide advice to one party, and the other lawyer will review the agreement and provide advice to the other party.
For more information about Binding Financial Agreements and to discuss your options, please contact our office at 03 9486 1661, and speak with one of our experienced family lawyers. Alternatively, you can directly book an initial consultation here.
How can Northcote Lawyers help?
Understanding your rights and entitlements in a financial settlement be challenging. Northcote Lawyers is committed to not only guiding you through the process in a way that is clear and simple, but also ensuring you achieve a fair outcome. Our reliable team is dedicated to working with you to meet your specific needs and answering all your difficult questions.
To speak with one of our experienced family lawyers, please contact our office by phone or make a booking online.
(03) 9486 1661
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