Binding Financial Agreements
A Binding Financial Agreement is a document made according to law that people in a relationship can make to protect their individual assets.
Depending on the stage of your relationship, many people choose to enter into a Binding Financial Agreement through the Family Law Act if they are de facto, prior to becoming married or once they are married or even after they have been divorced.
The agreement states how your assets (including property and cars), financial resources and liabilities (including bills and debt) will be divided if your relationship ends.
It is never too late to enter into a financial binding agreement, so even if you are married you can sit down and work out everything together. The benefits of entering into a binding financial agreement are substantial, and even just having less stress and things to work out if for any reason your relationship ends is enough to get things sorted.
A lot of the time there are children involved and having a Binding Financial Agreement in place can make for a much smoother transition. You will each have a clearer understanding of how things will be split or divided which means you will spend less time arguing and be able to move on with life without too much negative interruption.
The team at Baker Deane and Nutt specialise in Family Law and can help you with any questions you may have surrounding a Binding Financial Agreement and lots more.
FAQ's
A properly drafted Binding Financial Agreement will cost you more than an Application for Consent Orders. A Binding Financial Agreement requires both parties to have comprehensive independent legal advice. Each party must have a lawyer which in turn equates to more costs. In contrast, when you file an Application for Consent Orders you can choose whether or not you wish to use lawyer.
When considering an Application for Consent Orders the Registrar of the Court is required to ensure that the Orders are “just and equitable” pursuant to the Family Law Act 1975. On occasion we will have clients who strike a deal that they are happy with and that works for them however the Court may not regard it as “just and equitable”.
Another reason you may choose a Binding Financial Agreement is where you want to make provision for spousal maintenance, or make sure no-one can make a claim. An order for spousal maintenance in a Family Court Order can be varied by the Court down the track. A Binding Financial Agreement can ensure this does not happen.
If you have reached agreement please contact us so that we can advise you of the best option for you.
