Get tailored advice for your binding financial agreement
A prenuptial agreement, known in Australia as a Binding Financial Agreement (BFA), is a formal agreement made between two people in a relationship that outlines what is to happen to the ownership of their respective assets should their relationship end.
A binding financial agreement can be made before marriage, during a marriage, and after a divorce application is made. They can also be made before a de facto relationship starts, during a de facto relationship and after a de facto relationship ends.
A binding financial agreement is most commonly made when:
- One person has much more property, assets and wealth than the other when the relationship began
- One person is expected to receive a substantial gift or inheritance in the future
- You are entering a new relationship and you want to financially protect your children from a previous relationship
Binding financial agreements often include protection for:
- Property and real estate
- Cash assets
- A family business
- An entitlement to an inheritance
- Pension entitlements
Binding financial agreements outline what is to happen to these assets if the marriage or de facto relationship ends, and avoids the matter needing to be taken to court to resolve a dispute.
Binding financial agreements must comply with strict legal requirements, and must include a certificate from a lawyer to state you have received appropriate advice regarding the distribution of your assets. If the agreement does not follow legal procedures, it may become void, and the matter may need to go to court anyway.
For advice regarding your binding financial agreement, and to obtain certification, please speak to our family lawyers.