BINDING FINANCIAL AGREEMENTS

A Binding Financial Agreement (BFA) is a document that deals with property and spousal maintenance between two parties. The Family Law Act 1975 provides for parties to a marriage or de facto relationship to enter into a binding legal agreement about the financial arrangements should their marriage or de facto relationship break down. A BFA is not required to be fair, unlike property settlement consent orders which are required to be just and equitable.

You can make a financial agreement before, during or after a marriage or de facto relationship. These agreements can cover:

  • financial settlement (including superannuation entitlements) after the breakdown of a marriage or a de facto relationship
  • financial support (maintenance) of one spouse by the other after the breakdown of a marriage or a de facto relationship,
  • any incidental issues.

For a financial agreement to be legally binding, you must both have:

  • signed the agreement, and
  • received independent legal and financial advice before signing.

Drafting BFA’s is a detailed process. In order to adequately make provision for what the parties want, and in order to make any potential challenge unlikely to succeed, the parties ought to make a full and frank disclosure of their financial circumstances before entering into the financial agreement.

I can provide advice regarding on your property rights at the beginning and end of a relationship, how to protect your contributions and whether a financial agreement would work for you. I can also advise on the process for dividing properties after a divorce or break-up of a de facto relationship, the probable outcome of any court proceedings, and the most cost-effective way of making sure you receive your fair share.

 

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Phone

M: 0415 604 593

Address

Level 2 / 2 Barrack Street

SYDNEY NSW 2000