“Pre-nuptial” / Financial Agreements
Binding Financial Agreements (“BFAs”) are available to both married and de facto couples, and can be entered into before they commence to live together, whilst living together, or after they separate. BFAs can deal with a number of issues, including:
- How in the event of the breakdown of the parties’ relationship or marriage, all or any of the property or financial resources of either or both of the parties is to be dealt with;
- The maintenance of either or both of the parties; and
- Matters incidental to the issues mentioned above.
For a Financial Agreement to be binding it must be drafted in accordance with the technical requirements stated in the Family Law Act 1975 (“FLA”). It is imperative that each party receive independent legal advice prior to signing the BFA, and that they each provide full and accurate disclosure by way of all relevant information and documents evidencing their respective financial positions.
BFAs are entered into for a variety of reasons, including:
- A party wanting to protect assets for the benefit of children from a prior relationship or for other members of his/her family;
- One party may be entering the relationship with a far superior financial position than the other party and wish to protect his/her assets, particularly in circumstances where the new relationship may end up being of short duration;
- Parties determine for themselves, rather than the Courts making a decision, about what they shall each receive if they separate in the future;
- It provides certainty to business partners that they won’t be dragged into conflict which may arise between their partners and their spouses;
- In order to protect a future inheritance;
- To save on the legal costs associated with either negotiating a property settlement after separation or engaging in contested litigation before the Courts if you can’t reach agreement.
For advice in relation to the above or any other Family Law issues please do not hesitate to contact our office to arrange an initial half-an-hour conference with one of our lawyers, free of charge on 03 9366 5555.z
To book a consultation with our family law team, call us today on 03 9366 5555.