What is a binding financial agreement?
Aslo known as a BFA, prenuptial agreement or financial agreement. A binding financial agreement refers to a range of different types of agreements that are enforceable by law.
Binding financial agreements include
- Prenuptial agreements
- Postnuptial agreements
- Cohabitation agreements
- Separation agreements
- Divorce agreements
What makes a binding financial agreement binding?
Under section 90G of the family Law act, a BFA’s is only binding under the following conditions:
(a) the agreement is signed by all parties; and
(b) before signing the agreement, each spouse party was provided with independent legal advice from a legal practitioner about the effect of the agreement on the rights of that party and about the advantages and disadvantages, at the time that the advice was provided, to that party of making the agreement; and
(c) either before or after signing the agreement, each spouse party was provided with a signed statement by the legal practitioner stating that the advice referred to in paragraph (b) was provided to that party (whether or not the statement is annexed to the agreement); and
(d) a copy of the statement referred to in paragraph (c) that was provided to a spouse party is given to the other spouse party or to a legal practitioner for the other spouse party; and
(e) the agreement has not been terminated and has not been set aside by a court.
If the above requirements were not met, then the BFA would not be binding.
How we can help
As you can see, binding financial agreements are complex. They require not only understanding of how to make an appropriate agreement and how enforceable can agreement will be, but also to ensure that the processes required to make the BFA enforceable are in fact followed.
Clearly, without help from a legal practitioner a BFA would not be enforceable in court. So help from a lawyer is not only recommended, it is in fact required.
We have provided our clients with binding financial agreement advice for over 35 years and are highly experienced in all aspects of these agreements from the negotiation, creation, revision, advice, exchange and enforcement of such agreements.
Contact us today
The reason why legal advice is required in the creation of a binding financial agreement is that they are complex, and have impacts into your life far into the future.
With such an important document, why wait until the last minute. Talk to us today about how we can help you create a fair and enforceable binding financial agreement for you to have peace of mind into the future.