Because of the flexibility of the BFA, we believe that these agreements are useful in documenting a party`s financial commitments and how its assets/liabilities and financial resources are distributed or distributed in the event of adultery or separation. A binding financial agreement is an agreement between two or more persons that complies with the Family Act 1975 (Cth). The binding financial agreements deal with the distribution of ownership between the parties, the superannuation and/or maintenance of the spouses. When considering these issues, a BFA will explain how the parties should manage their financial affairs. A binding financial agreement is intended to prevent the parties from taking legal action to deal with the division of their assets. A BFA could also look at potential rights to each other`s estate after death or potential estates. A binding financial agreement reached before the breakdown of the marriage or before the start of a de facto agreement (also known as a “pre-marital agreement”) would generally provide more information on how the parties should distribute their assets in the event of separation. The BFAs allow the parties to define and determine a wide range of financial issues, including: If people are considering marriage, taking into account matters relating to real estate or financial resources, to enter into a written agreement, this financial agreement will apply to marriage. Financial agreements are contracts that bind two or more parties before marriage, during marriage or after a divorce order.

This agreement can be reached between same-sex or same-sex couples. It is advantageous to use an approval decision instead of a financial agreement to solve financial problems. If you get an agreement with your spouse or former partner, you can implement it in the form of a consent order. They then submit the proposed order to the Tribunal. If the court agrees that the order is appropriate, it will enter the order. Parties to a financial agreement must obtain independent legal advice prior to the development of an agreement. This can be expensive and time-consuming, and approval orders are not. For a binding financial agreement to cover each of the circumstances (de facto or marital), there must be separate agreements corresponding to the relevant sections of the Family Law. The Thorne v Kennedy case (2017), contested to the High Court of Australia, is a classic example where a party (usually a party in a higher financial position) attempts to protect its assets with a BFA in the event of a separation.

Unfortunately, for Mr. Kennedy, the High Court struck down the BFA (prenup) and referred the matter to the Federal Court of Justice for decision. Obtaining legal advice is one of those steps. However, even if you do not wish to enter into a binding financial agreement, it is advisable to seek the assistance of a lawyer to ensure that you understand your rights and obligations before entering into a financial agreement. Types of financial agreements Parties to the financial agreement have the right to change the terms of the agreement at any time in the relationship. In addition, this can be done by developing a new financial agreement. Watson and Watson`s experienced solicitors are aware of the circumstances surrounding financial agreement issues and know whether they are binding or emotional.