Binding Financial Agreements
Binding financial agreements
Binding Financial Agreements (also known as a Pre Nuptial Agreements and Post Nuptial Agreements) became part of the Family Law Act in 2000 and were introduced to allow people to be able to control their financial & proprietal affairs without the expense of litigation.
What can a binding financial agreement do?
A Binding Financial Agreement allows parties to document in writing who is to receive what upon the termination of a marriage or de-facto relationship and it affords each party protection that they will not end up having to defend an expensive Property Matter in the Family Court in the future.
When can I enter into a binding financial agreement?
A Binding Financial Agreement may be made before, during or after marriage or relationship (however, within 12 months a divorce).
Can I change the agreement?
The terms of the agreements can be varied at any time with the consent of both parties. In these circumstances, it is advisable to enter into a new agreement altogether.
How strong are binding financial agreements?
If the Binding Financial Agreement is entered into in accordance with the law, it can be very difficult to set them aside. They can however, in certain circumstances, as set out in the Family Law Act, be set aside.
Parties to a Binding Financial Agreement are required by law to make full and proper disclosure of all of their assets and financial resources prior to entering into the agreement.  They also need to disclose all their liabilities. This is known as full and proper disclosure and is required under the Family Law Act. Without full and proper disclosure to each other, agreement such as BFAs can be set aside by the court.
The agreement is required to be properly explained to each party by an independent lawyer. In fact, for an agreement to be binding, it is required to have both a statement in the body of an agreement confirming that the parties have each received independent legal advice as well as a certificate attached to it from each solicitor who has given the advice. The contents of the certificate are dictated by the Family Law Act.
In order for the agreement to be binding, it must also be fair and reasonable.  If an agreement is not fair and reasonable, it can be set aside by Court.
If required, the courts have the power to enforce a binding financial agreement.
Do we really need two separate lawyers?
Absolutely! The law requires that each party needs to have independent legal advice about the agreement, its contents and the advantages / disadvantages of the agreement.
What we can do for you
At Antwan Family Lawyers Sydney, we have drafted and finalised hundreds of agreements over the years. Our team of expert family lawyers understand how to draft these complex agreements, so that they will indeed reflect your agreement and what is your best interest.
Our expertise in Binding Financial Agreements is readily available from our entire senior Family Law lawyers.
Please contact us today to discuss obtaining or examining a Binding Financial