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Binding Financial Agreements
At Call Mick, we specialise in drafting and reviewing Binding Financial Agreements (BFAs) for various circumstances, including during the relationship, after separation or divorce, during marriage, or in anticipation of marriage.
What is a Binding Financial Agreement?
A Binding Financial Agreement (BFA) is a legally binding agreement between parties in a marriage or de facto relationship, made in accordance with the Family Law Act 1975. BFAs, often known as “Prenups,” provide clarity and certainty regarding the division of assets in the event of a relationship breakdown.
Types of Binding Financial Agreements:
- Pre-Nuptial Financial Agreements: Made before marriage or the start of a de facto relationship (Sections 90B or 90UB of the Family Law Act 1975).
- Financial Agreements During Cohabitation: Made during marriage or a de facto relationship (Sections 90C or 90UC).
- Post-Nuptial Financial Agreements: Made after divorce or separation (Sections 90D or 90UD).
Requirements of a Binding Financial Agreement
- Must be in writing and refer to the relevant section of the Family Law Act 1975.
- Signed by both parties after receiving independent legal advice.
- Includes a statement by a legal practitioner certifying the provision of legal advice on rights and the agreement’s advantages and disadvantages.
How we prepare your Binding Financial Agreement
- Initial Consultation: We begin with a free in-depth consultation to discuss your legal options and suitability for a BFA.
- Preparation and Disclosure: Obtain detailed instructions and request financial disclosure documents from both parties. We then draft the BFA within several days.
- Review and Execution: After your approval, the draft BFA is sent to the other party’s solicitor for review and execution. Any minor amendments are addressed as per your instructions. Once finalised, the agreement is executed by all parties and dated.
Our efficient process ensures that each party retains an original signed counterpart of the agreement, if preferred.
In summary, executing a Binding Financial Agreement with Call Mick provides a cost-effective, quick, and legally secure way to formalise asset division, offering peace of mind in accordance with the Family Law Act 1975.
Binding Financial Agreements made simple and affordable.
For comprehensive legal support, contact Call Mick for expert guidance through your property settlement.
Frequently Asked Questions
What are the advantages of a Binding Financial Agreement?
Binding Financial Agreements allow individuals to decide how to use their property post-separation. They can protect pre-relationship assets, future inheritances, and the inheritance of children from previous relationships. Binding Financial Agreements reduce the emotional and financial stress associated with property disputes, providing clarity and certainty.
Can I use a Binding Financial Agreement to protect my business?
Binding Financial Agreements can protect businesses, companies, and trusts from claims by an ex-partner. They are also useful in estate and succession planning, ensuring the protection of family wealth across generations. Binding Financial Agreements prevent business disruptions caused by relationship breakdowns among co-owners.
Can a Binding Financial Agreement protect my inheritances?
Binding Financial Agreements are particularly beneficial for those with family wealth, potential inheritances, blended families, or significant financial disparities. They can safeguard future inheritances and provide financial certainty in both de facto relationships and marriages.
I want to repartner, should we have a Binding Financial Agreement?
Binding Financial Agreements are crucial for those entering second relationships or marriages, ensuring assets brought into the relationship are accounted for and protected. They help manage blended family dynamics and protect inheritances.
What should my Binding Financial Agreement cover?
A Binding Financial Agreement should cover the division of real property, shares, investments, motor vehicles, trusts, corporate structures, and inheritances. It must be drafted meticulously by a specialised lawyer to ensure validity and cover all potential scenarios. Legal advice is mandatory for the agreement to be binding.
We have already separated, can we still draft a Binding Financial Agreement?
Binding Financial Agreements can be executed post-separation or divorce. They are the only way to prevent the court from awarding spousal maintenance. Depending on your circumstances, we provide advice on whether a Binding Financial Agreement or Consent Orders are more appropriate.
When will the Financial Agreement be binding?
For a Binding Financial Agreement to be binding, the following requirements must be met:
- Written agreement referring to the relevant section of the Family Law Act 1975
- Independent legal advice for both parties before signing
- Certification by a legal practitioner regarding the provided advice
When should I consult a family lawyer?
Consult a family lawyer if considering separation or divorce. Early legal advice helps understand rights, options, and decisions’ implications. Considerations include:
- Before separation: understand rights and prepare
- During negotiations: facilitate and represent interests
- When facing court: navigate the legal process with representation