What is a Binding Financial Agreement (“BFA”)?
Some people know them as pre-nuptial agreements, others might think of it as a way to formally end a financial relationship when people are ending their domestic relationship.
The Binding Financial Agreemnt is all these things and more!
It is a legally binding agreement determining how property will be dealt with at the end of a relationship.
Considering a relationship?
Yes! Before you even enter into either a de facto relationship, a marriage or a same sex relationship.
This option gives you certainty that assets you have accumulated before a relationship can be protected, and you can ensure that if the relationship does come to an untimely end, that you will at least walk out of the relationship with what you came in with.
During a relationship
Consider this – you’re in a relationship but what if you’re on rocky ground? Something has happened in the relationship and one party wants some certainty or security going forward, even about assets that the couple have acquired during a relationship.
A BFA can be entered into at any point DURING a relationship – yes – you don’t have to wait until the end of the relationship.
In fact, many people think it can help to provide stability to a relationship.
At the end of a relationship
Binding Financial Agreements are a great alternative to obtaining Court orders to provide a legal ending to a financial relationship.
Sometimes parties agree to what they want, but it might not pass the ‘just and reasonable’ test that is required by the Court for one reason or another.
If, for some reason, Court orders won’t work for an agreement then a Binding Financial Agreement is the ONLY other way to create a legally binding settlement.
So! Whether you’re considering a relationship, in one or ending one, the Binding Financial Agreement may well be for you.
Give us a call today if you think a BFA might be right for you.
About the author:
This article has been authored by Jacqueline Brown at Lynn and Brown Lawyers. Jacqueline is a Director at Lynn and Brown, practicing mainly in Family Law.