One of the key themes of implementing your binding financial agreement is to ensure that it is effectively binding. It is a good idea to try to reach an agreement on how you share your property without going to court. If you don`t agree, there are family reunification services that can help. Certain conditions must be met before your financial agreement is legally binding (applicable). Both persons must sign it and there must be a declaration indicating that each person has received independent legal advice, including: These types of agreements are common for couples who enter into a second marriage or who own heritage property before marriage and wish to retain these assets as separate property. It is important that you work with an experienced lawyer to prepare your binding financial agreement. Our team of family lawyers in Brisbane has experience in managing complex scenarios and related tax and wealth implications. The binding financial agreements (BFA) define the terms of the allocation of assets in the event of a breakdown of a relationship. It can be done before (prenup), during or after a relationship. A binding financial agreement defines how all the assets, financial resources and liabilities of both parties are distributed as individuals in the event of a breakdown of the relationship. In the following video series, CGW family partner Justine Woods discusses what you need to know about binding financial arrangements for married and de facto couples, including the pros and cons, risks and potential flaws, and what the process will likely entail. The law allows married or de facto couples to make legally binding (opposable) financial arrangements on their property. These agreements can be concluded before, during or at the end of a relationship.
Pre-marriage financial agreements are often referred to as “pre-marital agreements.” You can also enter into a binding financial agreement to formalize your separation from your spouse or common-law partner. These agreements are concluded in accordance with Section 90D (for Married Relationships) or Section 90UD (for Common Relations) of the Family Law Act. The binding financial agreements are concluded in accordance with the provisions of the Family Law Act (or, in the case of de facto relations, in Western Australia, the Family Court Act). These financial agreements are still commonly referred to as financial agreements (BFA) despite the amendment of the Family Law and are now simply called financial agreements. There is often an imbalance of economic power in relations. Since the court has not approved financial agreements, it is possible to execute an agreement that is not fair and equitable for each party. This is why it is mandatory for each party to receive independent legal advice before the agreement is signed, otherwise it is not considered binding. If a party has not received independent legal advice or signed the agreement under duress, inappropriate influence and/or indecent conduct, the agreement may be quashed by the courts. In the event of termination of an agreement, each party may initiate a process of liquidation and/or preservation of the property. Friendly guides you through a step-by-step process and provides you with information and support on the way to help you find an agreement. Approval decisions are an agreement between ex-partners, which is approved by the court and then made in a court order. Decisions to approve property disputes have the same legal effect as all other court decisions.
When considering marriage or entering into a common-law relationship, a binding financial agreement (BFA), sometimes referred to as “pre-nup,” can be a practical and effective way to protect your wealth and avoid the potential emotional and financial costs of a relationship breakdown.