Binding Financial Agreements

Are you thinking about moving in with your partner or planning to get married? Making a Binding Financial Agreement should be something that you also consider.

A Binding Financial Agreement or BFA is an agreement that you and your partner can make in relation to your financial affairs and how they would be dealt with in the event that you separated. These agreements are sometimes referred to as “Prenuptial Agreements” or “Prenups”, however, in Australia they are referred to as BFA’s.

A BFA is an agreement between to two people and is a necessary precaution in order to protect you and your family’s assets and income from uncertainty in the future.

There are a few different types of BFA’s that can be made depending on the circumstances of your relationship, which include:

  1. If you and your partner are planning on getting married – this agreement is sometimes referred to as a “pre-nuptial agreement”. If the marriage does not go ahead this agreement will not be binding.
  2. During a marriage and before separation has occurred.
  3. Before a de facto relationship commences, this agreement will terminate if the parties marry.
  4. During a de facto relationship, this agreement will also terminate if the parties marry.
  5. Before and after the parties move in together – these agreements can be made at the same time which will cover the parties if/when they decide to move in together.

There are also agreements that can be made after separation to finalise the financial relationship. A BFA is often utilised by people if they do not wish to go to Court.

Basically, you can enter into a BFA at any time during your relationship including before during and after.

There are specific requirements necessary to be included in all binding financial agreements in order to be considered legally binding and enforceable. These specific requirements are outlined in legislation[1]. This is where an experienced family law practitioner can assist parties adhere to the various legislative requirements in their BFA.

Please contact us if you would like any further information about BFA’s.

 

Lettice L Patterson – Solicitor

Kelly Family Law Group

[1] Family Law Act 1975 (Cth).