Binding Financial Agreements
Binding Financial Agreements
At Cahill Family Lawyers, we provide clear and strategic guidance throughout the process of preparing and implementing a Binding Financial Agreement (commonly known as a BFA).
A Binding Financial Agreement is a legally enforceable agreement that is made under strict legal requirements of the Family Law Act 1975 (Cth), which sets how property, financial resources, superannuation and spousal maintenance will be dealt with in the event of a relationship breakdown.
In Australia, Binding Financial Agreements have a broad scope, and can be entered into at various stages of the relationship, whether this be by married couples, de facto couples, or couples starting a new relationship, or couples that are in the process of a separation.
These agreements can be made before, during, or after a marriage or de facto relationship, and are used to set out how property, financial resources, and liabilities will be divided between the parties in the event of a separation.
Types of Binding Financial Agreements
- Before marriage, or de facto relationship (commonly known as a Pre-Nuptial Agreement).
- During a marriage, or de facto relationship.
- After separation or divorce.
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When parties enter into a Binding Financial Agreement, they are contracting out of the Federal Circuit and Family Court of Australia’s powers to determine property settlement based on what is just and equitable and in accordance with the principles of the Family Law Act 1975 (Cth).
While Binding Financial Agreements offer flexibility and certainty, they must meet strict legal and procedural requirements under the Family Law Act 1975 (Cth) to be enforceable. We will ensure your agreement complies with all formality and legislative requirements, and that you receive independent legal advice about the effect of the agreement on your rights at the time of signing, which is a key condition for the validity of a Binding Financial Agreement under the Family Law Act 1975 (Cth). We will ensure that you are aware of the potential risks and limitations of the proposed Binding Financial Agreement, including the circumstances in which the Federal Circuit and Family Court of Australia may set them aside (such as fraud, duress, or significant changes in circumstances).
If you are contemplating a Binding Financial Agreement, whether before, during or after a relationship, our experienced team will ensure your agreement is effectively drafted, compliant and tailored to your individual circumstances, so you can enter the agreement with clarity and confidence.
Disclaimer:
The information provided on this page is of a general nature and does not constitute legal advice. Binding Financial Agreements are complex legal documents that require careful legal drafting and independent legal advice for the document to be valid and enforceable. We recommend you contact our office directly for tailored legal advice, suited to your individual needs and circumstances.