BINDING FINANCIAL AGREEMENT - Wollongong, NSW LAWYERS

A Binding Financial Agreement is a written document that is entered into under the Family Law Act and allows parties to outline how their property and financial resources are to be divided in the event that they separate or have already separated.

By signing a Binding Financial Agreement the parties forgo any rights they may have to make a claim against their partner under the Family Law Act. Instead, the Binding Financial Agreement outlines how their property and financial resources are to be divided if the parties separate.

A Binding Financial Agreement is similar to the pre-nuptial agreement commonly used in the United States, which also provides a clear plan for asset division in the event of a divorce or separation.

Many people have heard of ‘prenuptial agreements’ or ‘pre-nups’ through American television shows or movies. Such agreements like superannuation splitting as well can be entered into under Australian Family Law but they are referred to as ‘Binding Financial Agreements’.

Binding Financial Agreements are not just for people considering marriage. Binding Financial Agreements can be entered into almost anytime including before the relationship or cohabitation commences, during or after marriage and after separation.

Binding Financial Agreements are also able to be entered into in de facto relationships and same sex relationships. People considering entering into a de facto relationship or marriage can set out how their assets are to be divided in the event of their relationship breaking down.

For a Binding Financial Agreement to be valid there are a number of technical and legal requirements to be satisfied. It must be in writing and signed by each party and their lawyers. If the agreement is not drafted carefully and accurately it may not be enforceable and it may later be challenged or even set aside by the court.

The law states each party must receive independent legal advice regarding the Binding Financial Agreement for it to be binding and enforceable. Each party must discuss the agreement with their own lawyer. The agreement needs to be voluntarily entered into and once properly signed is binding on the parties to the agreement provided each person has received independent legal advice from a legal practitioner regarding the effect of the agreement on the rights of that party and the advantages and disadvantages at the time the advice was provided to the party making the agreement.

By entering a Binding Financial Agreement you are provided with certainty as to the division of your property should you separate from your partner. It also allows you to protect the assets that you have entered the relationship with or potentially future assets that you may acquire such as by way of an inheritance.

By entering a Binding Financial Agreement, the parties are not bound by the Family Law Act provided the agreement is not set aside. The Binding Financial Agreement also allows you to make provisions that suit you and your spouse or former spouse specifically.

While it is technically possible to draft your own Binding Financial Agreement, it is not advisable.

A Binding Financial Agreement must meet specific legal requirements to be valid under Australian law. The Family Law Act outlines that each party involved must obtain independent legal advice before signing the agreement. This advice must cover the advantages, disadvantages, and effects of the agreement on their rights. Without this, the agreement is unlikely to be legally binding and enforceable.

Additionally, if a BFA is not carefully drafted, it can be challenged or set aside by the court, which may lead to legal disputes that can be stressful and financially burdensome. Given the complexity of such financial arrangements and the stakes involved, we highly recommend you seek the assistance of experienced family lawyers at Kells to ensure your agreement complies with all legal standards and protects your interests.

While Binding Financial Agreements (BFAs) can be highly effective tools for protecting your financial interests, potential challenges may arise if the agreement is poorly drafted or fails to meet legal requirements. In such cases, a BFA could be subject to legal challenges, such as being set aside by a court if it was made under duress, involved non-disclosure of assets, or is deemed unfair at the time of enforcement. However, these risks are significantly reduced when the agreement is drafted by experienced family lawyers.

It's also important to note that a BFA may not always account for future changes, such as shifts in financial circumstances or the birth of children. This could mean that the agreement may need to be revisited to remain relevant to both parties. While obtaining independent legal advice is essential and adds to the process, it ensures that the agreement is fair and protects both parties' rights.

Ultimately, a well-drafted BFA can minimise risks and provide peace of mind, but it should be approached with careful consideration and proper legal guidance to avoid potential issues later on.

Factors that influence the cost of drafting a Binding Financial Agreement (BFA) include the intricacy of the case, the assets involved, and the level of negotiation required. Each party is also required to seek independent legal advice, which contributes to the overall cost.

At Kells, we understand that cost is an important consideration, and we are committed to providing the highest level of service while remaining affordable. Our binding financial agreement lawyers will ensure that you only pay a fair and reasonable amount based on your specific circumstances. We offer affordable pricing for family law matters and will provide you with a fair estimate so you can proceed with confidence, knowing you're getting the best possible value for the expert legal services we provide.

Kells' experienced Binding Financial Agreement lawyers serve clients across NSW. We have offices located in Wollongong, Thirroul, Dapto, Shellharbour, Kiama, and even in Sydney, allowing us to provide legal assistance to clients throughout these regions.

Our family law team is readily available to help you draft a Binding Financial Agreement. No matter where you're located, Kells is here to ensure you have the expert legal support you require for your family law matters.