A Binding Financial Agreement (“BFA”) is more commonly referred to as a ‘prenuptial agreement’ or ‘prenup’, and is entered into by both married and de facto couples looking to protect their assets in the event the relationship breaks down. A BFA constitutes a binding agreement under the law between two people at any stage of their relationship. Its main purpose is to help the parties determine how they will split up their assets should the relationship come to an end, or if it has already done so.
Under the Family Law Act, there are certain legal requirements that must be followed for a BFA to be valid and enforceable. For example, the couple must fully disclose the extent of their assets, debts, and financial resources, and both parties will need to get independent legal advice about the consequences of entering a BFA. This is to ensure that both parties, independent of one another, understand the nature and consequences of entering such a document, and guarantees that one party has not influenced the other.
If you or your partner wish to protect your assets, and make sure they remain your assets if the relationship ends, call LegalVision on 1300 544 755. If you would prefer one of our team to contact you, simply leave your details and we can get back in touch.
If you are considering getting married or entering into a de facto relationship, then a BFA will provide you with asset protection. If you do not have a BFA, you could end up paying excessive legal costs that often arise from property settlement disputes, and potentially have to give up some of your asset base, too. A BFA helps to avoid this uncertainty and added expense, and allows both parties to move forward with a sense of financial security.
For legal advice on setting up a BFA, contact LegalVision on 1300 544 755.