A BFA (Binding Financial Agreement) is a legally binding document which sets out what would happen to the couple’s finances and property, should the marriage or de facto relationship break down resulting in separation or divorce. It allows a couple to plan their future rights and responsibilities, before entering a marriage or even during or after, in the event of a substantial financial change. A BFA is not lodged with a court, but rather acts as a private contract between the parties.
Importantly, a BFA can protect assets including cash, property, superannuation or inheritances and are predominantly used for setting out the financial arrangements of the couple. However, a BFA does not cover child custody arrangements, nor child support payments. A more extensive discussion of which matters can be dealt with in a BFA can be found in our blog article about constructing, obtaining and setting aside Prenuptial Agreements.
Advantages of entering into a BFA include:
A Binding Financial Agreement covers how the property or financial resources are to be dealt with in the event of the breakdown of the relationship.
It is very important that your BFA meets the requirements set out in the Family Law Act. BFAs which are incorrectly drafted may be deemed invalid or set aside, but engaging an experienced solicitor will assist in this process.
Additionally, for a financial agreement to be binding, before it can be signed by both parties:
Our firm will make a detailed assessment of your financial situation based on the information provided by you in relation to your:
Paul Etherington is the Principal and founder of Etheringtons Solicitors. In 1989 Paul commenced practising as a sole practitioner and with vision and strategy, the firm has grown to become a highly regarded legal practice, located at North Sydney.
Eleni Tsoromokos is a passionate and pragmatic family lawyer with experience in a wide range of divorce, property settlement, spousal maintenance and child support matters. She has extensive expertise in both parenting and financial matters. In parenting matters, Eleni’s experience ranges from facilitating and negotiating equal or substantial time arrangements to more complex matters such as Hague Convention (international child abduction) applications and child abuse and risk.
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