IS A BINDING FINANICAL AGREEMENT THE RIGHT OPTION FOR YOU?
Are you entering into a relationship, already in a relationship or has your relationship broken down irretrievably. Have you considered a Binding Financial Agreement?
A Binding Financial Agreement can be entered into on three occasions:
1. Before a marriage/de facto relationship;
2. During a marriage/ de facto relationship; and
3. After the marriage/ de facto relationship has broken down.
What is a Binding Financial Agreement?
A Binding Financial Agreement is a contract between couples.
If they are entered into before or during a marriage/ de facto relationship it is usually for the purpose of quarantining the assets brought into the relationship and making provisions for the division of joint assets and any spousal maintenance payments in the event of separation.
Binding Financial Agreements entered into following separation are usually in circumstances whereby parties have amicably agreed to split their assets in a certain manner, even if this took some negotiation to get to that agreement. The parties essentially contract out of the process & pathway the Family Law Act sets out and the Court applies in determining a just and equitable division of assets.
Are Binding Financial Agreements Binding?
For Binding Financial Agreements to be binding the Agreement will need to meet certain requirements. The Agreement needs to be drafted correctly and they are technical Agreements with certain matters that are essential to address, each party will need to obtain legal advice, the relevant Certificates annexed to the Agreement will need to be signed by each party and their Solicitors and those certificates need to be exchanged between the parties.
It is paramount for each party to provide full and frank disclosure of their relevant financial circumstances at the time the Binding Financial Agreement is being drafted and executed.
A well drafted Binding Financial Agreement and sound legal advice could protect you financially in the long run and save you from costly Court proceedings.
If you are interested in protecting your assets or wish to resolve your marital finances quick and efficiently, please contact our family law team who are able to assist you.