Binding Financial Agreements (BFA) or Financial Agreements as they are now called in the Family Law Act are contracts between couples as to how their finances and property will be dealt with after separation.
The terminology of pre-nuptial agreement (prenup) or post-nuptial agreement are also used to describe Financial Agreements.
Couples can make a Financial Agreement:
- Before they get married or enter into a de facto relationship;
- During their marriage or de facto relationship;
- During their marriage but after separation;
- After their marriage or de facto relationship ends.
The Financial Agreement might deal with how all or some of the assets that the parties own are divided (or not divided) and it might include provisions in relation to spousal maintenance.
The requirements for a Financial Agreement to be valid are very strict as the effect of the Financial Agreement will mean that the Family Law Courts do not have the authority to deal with the matters that are dealt with in the Financial Agreement.
As such each party to the Financial Agreement is required to obtain independent legal advice on the advantages and disadvantages of the Financial Agreement.
If you are considering proposing a Financial Agreement to your fiancé, proposed de facto partner or spouse or one has been proposed to you or you are considering one to formalise your financial / property settlement after separation, we recommend you make an initial consultation appointment at Torney Legal.
Torney Legal can advise you as to whether a Financial Agreement is right for you and give you preliminary advice on the advantages and disadvantages of a Financial Agreement before proceeding further.
If you decide to proceed with a Financial Agreement, in most circumstances Torney Legal can represent you in negotiations and with preparation of your Financial Agreement.