Binding Financial Agreement
A question that often gets asked of lawyers is “Do we have pre-nuptial agreements in Australia?”. The answer is yes we do, they are called Binding Financial Agreements, also known as a “BFA”. Furthermore, they are not just pre-nuptial – they can also be made during and after a relationship by married or de facto parties.
It is important to know that the courts consider the property/assets each party owns at the commencement of a new relationship as a contribution to the joint property of that relationship. If you have property you do not wish to be considered joint, then this needs to be clearly stated in a Binding Financial Agreement.
The BFA sets out how the property of the parties will be divided if the relationship ends. The agreement must be in writing and each party must get independent legal advice on the agreement.
Once signed, a BFA is a private document and not publicly disclosed. It is not required to be filed in court to have legal effect. It is legally binding on the parties and importantly, also the court as soon as it is properly signed.
What if you are getting married or entering a relationship for a second time?
“Is the property you kept from your first relationship at risk of being split up again?” The short answer is ‘yes, it is at risk’ – unless you do something about it this time.
If you didn’t consider a Binding Financial Agreement the first time around, perhaps you should now. Call us for a free first interview and we can talk you through the process.
CAUTION: This article contains general information of public interest only and is not intended to be, nor should be relied upon as legal advice specific to the reader’s personal circumstances. Should you have a legal matter, please seek professional advice before acting or relying on this content.