So last week I talked about the benefits of formalising your property settlement matters. One of the ways you can do that is entering into a Binding Financial Agreement (or BFA for short) after the relationship breaks down. While a lot of times we use Consent Orders, there are some matters where a BFA following separation might be appropriate.
While BFA’s can be entered post-separation as a way to formalise your property division and if relevant spousal maintenance agreement, they can also be entered before a marriage or de facto relationship. The benefit of the BFA before the relationship is that it will set out how the assets are going to be protected and divided in the event the relationship breaks down. You can even enter into a BFA during a relationship for the same reason – to set out at the onset of the relationship how the finances are going to be dealt with during the course of the relationship. While I hope you never need to rely on the BFA and your relationship goes the distance, the statistics tell us that not everyone is lucky in the love game and stay together for their lifetimes.
So why would you enter a BFA before your relationship starts or even after it has started? The biggest reason is asset protection!
But you don’t necessarily have to be as wealthy as a Kardashian to enter into a BFA. A lot of people like the thought of entering into a BFA at the onset of the relationship because it provides them both with certainty, security and finality in knowing that in the event their relationship does not make it, they have already agreed on the division of assets and finances. Not to mention they did that agreement at a time they loved each other, vastly different to what opinion they might have of each other at the demise of a relationship!
There are formalities that a BFA has to have to be binding. You cannot do it without a lawyer.
So tune in and listen as our Senior Associate Dannielle Young tells you about when a BFA might be needed, what the formalities are, and what needs to be considered when drafting the BFA.
You want to avoid there being any loopholes and avoid as far as possible anything that might give rise to the BFA being set aside. If you are considering entering into a BFA or if your new partner has raised this with you then you should get tailored advices about your circumstances. Come in and speak with one of our lawyers for tailored advices about this complex area of law.
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