What is a binding financial agreement?
In Australia, a prenuptial agreement is referred to as a Binding Financial Agreement (BFA).
A BFA is a binding legal document that stipulates how your financial resources, assets and liabilities will be distributed following the breakdown of a relationship.
When can you get a binding financial agreement?
Contrary to popular belief, a prenuptial agreement does not have to be entered into prior to marriage. The Family Law Act 1975 allows for couples in Perth and Australia, to legally enter into a Binding Financial Agreement either before, during or after a marriage and by de facto couples, where there is no marriage at all.
If a BFA is to be effective, each party must have obtained independent legal advice on their rights and the effects of the proposed agreement. The independent legal advice cannot be given by the same lawyer and should not be given by lawyers working for the same firm. Once properly executed, a BFA is a binding and legally enforceable document.
What are the advantages of a binding financial agreement?
A BFA is a versatile legal document seeking to cover a wide range of family law financial issues, including the separation of any joint property, the entitlement of a party to spousal maintenance, and the quarantine of certain assets from division during a separation.
The main advantage of entering into a BFA is that each party is provided with a level of certainty relating to the division of their assets and liabilities; resulting in considerable savings in time, money and emotions in the event of a relationship breaking down.
Experienced and empathetic, HHG Legal Group’s family lawyers will ensure your wishes are taken into account when drawing up a BFA.