Binding Financial Agreements
Amendments made on 1 March 2009, allow heterosexual de facto, same-sex de facto and married couples to enter into Binding Financial Agreements (BFA). These agreements allow a couple to agree on their notion of a fair division of assets if the relationship were to break down.
The main purpose of a BFA is to avoid having to file an application in the Family Court for the division of assets in property settlements. These agreements encourage couples to come to an understanding about how they want their property to be divided if the relationship was to break down before the situation is complicated with the shock or emotional influence that could come as a result of a break up.
There is often the notion that BFAs can negatively impact on a relationship or cause tension. This is of course possible however, if a relationship is healthy and stable it is far easier to come to an agreement on the equitable distribution of property and financial resources than on its breakdown. This creates an opportunity for a reasonable and fair written agreement and has the potential to reduce stress and strengthen your bond as a couple.
Each party must consult a separate family lawyer to assist them in drafting an agreement that will determine the division of property after the break down of the relationship. These agreements once signed, and exchanged become binding immediately. This is a more cost efficient means of achieving a property settlement compared to a court application.
For more information on Binding Financial Agreements, please contact one of our experienced Family Law lawyers for a confidential discussion.
Author: Elisa Garzarella Send an email to Elisa