A Binding Financial Agreement is a written legal agreement between two people made during or after their marriage or de facto relationship to set out how property, financial resources, and spousal maintenance will be dealt in case of separation.
A BFA can be made during or after a marriage or de-facto relationship. Let’s have a look at the benefits of such an agreement.
Benefits of a Binding Financial Agreement
• Creating a Binding Financial Agreement when a couple is still happy is highly likely to contain elements that are reasonable, agreeable and in favour of both parties.
• Many people get married more than once, because, well, love doesn’t always just happen once in your lifetime. However, a new love doesn’t mean a previously divorced spouse has to worry that they would lose every kind of support.
• Binding Financial Agreement also provides a level of security for children from previous marriage.
• A Binding Financial Agreement is less stressful if made before or during a relationship than after a breakup.
• To ensure your wishes are followed about where you want your assets to go, a Binding Financial Agreement can help in Estate Planning as well.
• Couples who have separated can provide tax or stamp duty relief in some cases using a Binding Financial Agreement.
Many may not agree with the idea of a Binding Financial Agreement but it sure saves everyone in a relationship from a lot of stress and financial loss. It can even prevent a relationship from failing since most fights in a relationship are about finances.
When does a Binding Financial Agreement come into effect?
In order for a Binding Financial Agreement to be legally binding and enforceable, both parties signing the agreement must obtain independent legal advice. The Court may sometimes also set aside Agreements if they are not drafted correctly or parties have not been advised of the implications of signing and therefore this is where we step in. Our family lawyers are experienced in drafting Agreements specifically tailored to our client’s needs and wants. We are also experienced at reviewing Agreements drafted by other solicitor’s and provide our client with a certificate independent legal advice. Whether you need a lawyer to draft your agreement or review an agreement your spouse has drafted, contact the experts at Family Lawyers Sydney NSW on 02 8084 2764 and learn more about how to go forward with having a BFA drawn without causing distress in your family.