If you are:
- planning to marry;
- planning to enter into a de facto relationship; or
- married or living in a de facto relationship;
you can enter into a Financial Agreement (also known as a Binding Financial Agreement or BFA) to define how, in the event of separation, you will divide your assets and to define your respective obligations to support one another. That can include quarantining assets from claim from each other and ending spousal maintenance entitlements.
BFA’s can also be used, after separation or after divorce to finalise your agreed property settlement and your obligations to support one another.
By making a Financial Agreement the parties contract out of the right that they would otherwise have to ask the Family Court or Federal Circuit Court to make orders about the division of their property or financial support after they separate.
BFA’s have strict defined requirements and will be binding only if:
- they are in writing and signed by all parties;
- before signing the Agreement both of the parties to the relationship are provided with independent legal advice about:
- the effect of the Agreement on their rights;
- the advantages and disadvantages of them entering into the Agreement; and
- both parties are provided with a statement by their lawyer and by the other party’s lawyer confirming that the advice has been provided to their client.
Financial Agreements although binding on the parties do not come into effect until:
- one of the parties signs a separation declaration stating that they have separated and are living separately and apart and that it is their opinion that there is no likelihood of cohabitation being resumed;
- they divorce; or
- one or both of the parties to the Agreement dies after separation.
There is no substitute for specialised family law advice so if you have questions about Financial Agreements or want to know your legal position please feel free to book a confidential appointment. We can assist you at all stages of the process, regardless of the path taken. Our lawyers provide advice based on the relevant facts and the individual needs of each client. No two cases or outcomes will be the same.
For answers to frequently asked questions about Financial Agreements please go to our FAQ page.