Splitting and dividing assets after divorce can be daunting. A Binding Financial Agreement (BFA) is a great way to finalise a divorce asset split and protect your assets going into the future. We offer fixed fee binding financial agreements for splitting martial assets when you have a separation agreement or for when you are entering a relationship or marriage to protect your assets.
What is a BFA?
A Binding Financial Agreement is a legal document that both parties sign which outlines how their assets and liabilities will be divided should they decide to part ways in the future or to finalise their property settlement after separation or divorce. Each party must have independent legal advice prior to signing the agreement and also have their lawyers sign off on the document before it is legally binding.
The benefit of drafting a BFA before or during a relationship is that you are able to protect your assets should you separate. The benefit of a BFA after separation is that you do not need to involve the courts in finalising your financial interests so there is no need to consider the financial settlement provisions of the Family Law Act 1975 (Cth).
What is a pre-nup?
Usually known as a pre-nuptial agreements, or pre-nup, a Binding Financial can be drafted at the beginning of a relationship prior to marriage or prior to entering into a de facto relationship. There are many benefits to executing a BFA prior to committing to your relationship. A BFA can be used to protect the assets that you contributed to the relationship and ensure that they remain your property after separation.
A BFA is useful to outline the assets and liabilities of both parties to the relationship and ensure that there is a fair division of the property based on each person’s contributions. Before you are married or enter into a de facto relationship, you are able to have a BFA drafted to address what would happen should you separate so both parties are comforted knowing that it is one issue that you would not need to deal with in the future.
Can I still protect my financial interests if I am already married or in a de facto relationship?
A Binding Financial Agreement can be entered into at any stage of the relationship, even if you have been together for years. It can outline the assets and liabilities of the parties and be comforting to each party to know that they will be looked after into the future if something does happen in the relationship. While BFAs sometimes can be a difficult topic to approach, it often can assist both parties to have peace of mind about how their assets would be separated and take away the added stress of resolving that in the future.
How can I finalise my property settlement with a BFA?
If you do not wish to file Consent Orders with the court, you are able to finalise your financial settlement with a Binding Financial Agreement. If you finalise your separation with Consent Orders, the court registrar or judge is required to consider whether the agreement is fair and equitable in accordance with the law. A BFA does not have this requirement and is finalised outside of court.
You are able to negotiate with the other party yourself, via a lawyer or through mediation to attempt to reach an agreement. You must provide full disclosure of your assets and liabilities. Once you have agreed on a division of the assets and liabilities, a lawyer can draft a BFA then both parties need to obtain independent legal advice. Once all parties have signed the document, this legally finalises your property settlement without the need to apply to the court.
How We Can Help
Binding Financial Agreements are a complicated area of law and if they are not drafted correctly it can cause you some very serious problems in the future. You need to ensure that the lawyer you engage to assist with your BFA is experienced in the area, is able to draft the agreement carefully and is capable of providing proper legal advice. Clarity Family Law Solutions are able to provide you with a consultation to determine whether a BFA is the right option for you. We have a professional team at Clarity Family Law Solutions with experience in drafting BFAs, providing fixed fee binding financial agreements and providing the required legal advice to ensure that your agreement is binding into the future.
Contact us for more information or for a free no obligation legal advice session.