Binding Financial Agreement Lawyers

Family lawyers intimately familar with drafting and reviewing Binding Financial Agreements

What is a Binding Financial Agreement?

A binding financial agreement (BFA) can be used in Australia to outline your property settlement when a marriage or de facto relationship ends. These are legally enforceable agreements that serve as an alternative to court orders.

For a BFA to be valid and enforceable, it must be carefully drafted to outline all terms of the settlement, including any superannuation divisions or spousal maintenance. If a BFA is poorly drafted, it may not stand up in court, potentially leading to legal disputes.

A BFA can be established at any stage of a relationship - before cohabitation, during a marriage or de facto relationship, or following separation or divorce.

Through negotiation or mediation, our family lawyers in Sydney can assist in drafting a suitable agreement. Both parties must receive independent legal advice to ensure the BFA is legally binding.

BFAs offer certain benefits compared to other property settlement methods. Drafting the agreement is up to the parties, which can save time compared to other legal processes. The parties can agree on asset division in a way that works for them, and the agreement remains binding as long as both have received independent legal advice. Consent orders, in contrast, require court approval and must be considered just and equitable.

Prenups

Prenups are one form of BFA. If you are interested in information about prenups, visit our prenups page.

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Some things to know about
Binding Financial Agreements

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Binding Financial Agreements can be used at any stage of a relationship

Binding Financial Agreements (BFAs) are known by several different names, including:

Pre-nuptial Agreements (commonly referred to as pre-nups)
Post-nuptial Agreements (post-nups)
Settlement Agreements
Cohabitation Agreements

A post-nuptial agreement can cover a range of topics, such as the division of assets and liabilities, spousal maintenance, and potential future inheritances.

It can also detail how assets acquired during the relationship will be divided, as well as how property and debts owned prior to the marriage or relationship will be handled.

Furthermore, post-nuptial agreements can include provisions related to inheritances and life insurance policies.

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What a Postnuptial Agreement should cover

Postnuptial agreements can address a variety of issues, including the division of property and debts, spousal support, and child custody and support.

They can also specify how property acquired during the relationship will be divided, as well as the treatment of assets and debts acquired before the marriage / relationship.

Additionally, postnuptial agreements can address issues such as inheritance and life insurance policies.

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BFAs are binding on Courts

Australian Courts our bound by BFAs, provided they have been set up correctly. To be binding, there are certain requirements that BFA’s need to meet. If these requirements are not met, then the agreement can be void or set aside by a Court.

An important feature of BFAs is that each party must obtain independent legal advice, and the solicitor for each party must sign a certificate confirming that they have advised their respective client about the effect of the Agreement on the party’s rights, and the advantages and disadvantages to that party of entering into the Agreement.

Both parties must also provide full and frank disclosure of their relevant financial circumstances at the time that the BFA is made.

The Property Settlement Process

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Step 1

Disclose Assets

Consider all assets, property and liabilities held by both members of the couple.

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Step 2

Model Options

Our lawyers will workshop different outcomes and divisions with you, then draft the Agreement.

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Step 3

Independent Legal Advice

The other party is presented with the Agreement, and must receive their own legal advice.

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Step 4

Legal Finalisation

The lawyers will arrange signing of the Agreement (execution), at which point it takes force.

Why choose Movement Legal?

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Clear legal advice

We communicate and offer advice in simple, understandable terms.

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Our focus is on achieving outcomes, and promptly resolving your matter

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Strategic Representation

We deliver clear strategies to advance and resolve your case.

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Dedicated Advocacy

We assert your rights through mediation, negotiation, and in court.

FAQs

Frequently Asked Questions

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What does a binding financial agreement lawyer do?

A binding financial agreement (BFA) lawyer assists clients in drafting, reviewing, and finalizing a legally enforceable financial agreement.

Their role involves ensuring that the agreement is properly structured to comply with the Family Law Act and addresses key financial matters such as asset division, spousal maintenance, and superannuation. The lawyer provides independent legal advice to their client, explaining the rights and obligations under the BFA and ensuring the client understands the consequences of signing the agreement.

Additionally, a BFA lawyer can help negotiate terms between parties, review the agreement for fairness, and ensure that all legal requirements are met to prevent the agreement from being challenged in court.

How Does a Binding Financial Agreement Differ from Consent Orders?

Both Consent Orders and BFAs provide a structured approach for dividing assets, finances, and property at the end of a relationship.

If a prenup is not in place, then the alternative is commonly to resolve unresolved issues through negotiations, lawyers, or before the court.

What Are the Consequences of Breaking a Binding Agreement?

If a Binding Financial Agreement is breached, the party harmed by the breach can seek legal remedies through the court system.

These remedies may include seeking compensation or enforcement of the agreement's terms through specific court orders.

Can a BFA include provisions for child custody or parenting arrangements?

No, a Binding Financial Agreement (BFA) cannot include provisions for child custody or parenting arrangements. A BFA is specifically used to address financial and property matters between parties, such as asset division, spousal maintenance, and superannuation.

Child custody and parenting arrangements must be handled separately, either through a parenting plan or consent orders, which can be approved by the court to ensure they are in the best interests of the children involved.

Binding Financial Agreement Lawyers