A Binding Financial Agreement (BFA) in Australia governs your assets in the event of a separation during a marriage or a de facto relationship. This settlement is a legal agreement. Therefore, both parties must agree on the terms and instructions and sign the document for it to take effect and be legally binding. If one partner disagrees and does not sign the document, then the BFA is not legally binding.
These agreements, once signed by both parties, are legally binding. As with all legal agreements, you can be taken to court if the other party does so. Having a legally signed agreement minimises the chances that anything will change when the agreement is followed.
Sections 90B–90KA of the Family Law Act 1975 deal with financial agreements by parties to a marriage. Sections 90UA–90UN apply to financial agreements by de facto couples. The Act only provides for financial agreements between de facto couples if the parties to the relationship were ordinarily resident in New South Wales, Victoria, Queensland, South Australia, Tasmania, the Australian Capital Territory, the Northern Territory or Norfolk Island when they made the agreement.
For a financial agreement to be legally binding, you must both have:
If one or both parties do not agree on how to divide the assets, they should apply to the court to have a financial order made by the court.
Having a binding financial agreement in Australia, such as a pre-nuptial or de facto agreement, is helpful. These agreements allow couples to avoid going to court regarding assets in the future if the relationship breakdown. It gives a sense of peace and control over the future, knowing what will happen in terms of asset distribution.
A pre-nuptial or de facto agreement is useful for couples that come into a relationship with children and assets. In terms of assets, maintaining total ownership is possible by having a legal agreement with your partner.
Remarriage is a reason people choose to have a pre-nuptial or de facto agreement. Individuals entering their second or third marriages can benefit from this agreement by making sure their assets go to their preferred beneficiaries. These can be children from their prior union, parents or others.
As the age of first-time brides and grooms rises, even couples entering their first marriages enter this agreement. This is because one person is likely to bring more assets to the relationship than was common in the past.
There may be many reasons to obtain a postnuptial agreement. A post-nuptial agreement is a Binding Financial Agreement in Australia created under section 90C of the Family Law Act 1975. A Post-Nuptial Agreement is similar to a Pre-Nuptial Agreement except that it is made after the marriage or de facto partnership has taken place.
Postnuptial agreements deal with the practical issue of how to establish an agreed and fair distribution of shared assets and interests if the marriage breaks down. This is a faster and less stressful way of dealing with asset distribution than going to court and having the court decide what happens with your assets.
Sometimes couples just do not get around to doing a pre-nuptial or de facto agreement or cannot complete an agreement before the wedding takes place. A postnuptial agreement is the logical follow-up.
There are certain circumstances set out in the Family Law Act where a Court may set aside a Binding Financial Agreement. These include:
Always make sure you seek legal advice before signing any document.
AussieLegal offers a number of legal kits and paralegal services that are specifically designed to help family members make a personal application and save thousands in legal fees.
Reach out on 1300 728 200 to discuss your situation with one of our consultants.
Hi
Can you please give me a rough idea of cost for a post nuptual agreement.
Thanks & regards
DS
Hi DS.
The current cost of the BFA PLUS service, which includes drafting and legal advice for both parties from our panel on independent law firms, is $3,415.50 which has a 10% discount from our regular price.
Please call us on 1300 728 200 if you would like more information.
Kind regards,
Mark
Hi
Can you please give me a rough idea of cost for a defacto agreement.
I am looking into this for my son & girlfriend.
Thanks & regards
Kathy Hughes
Hi Kathy,
Thank you for your inquiry about our Binding Financial Agreement. We sent an email to you regarding our services. Thank you!
Kind regards,
Aussielegal Team