BINDING FINANCIAL AGREEMENTS (BFAs)

At Starling Family Law, we can assist you with negotiating and drafting of binding financial agreements (or BFAs).

There are a number of different circumstances in which a binding financial agreement might be required:

• Prior to marriage (a “pre-nup”) or prior to cohabitating in a de facto relationship
• During your marriage or de facto relationship (sometimes called a “continuing relationship agreement”)
• Following separation or divorce (or “post relationship agreement”)

A binding financial agreement made prior to or during your relationship can preserve assets that are in the name of one party, protect existing or future inheritances or funds provided by one party’s family, or make other financial arrangements in the event that a relationship should end. Agreements may deal with some assets only (and the balance dealt with in the ordinary way) or they may provide a complete agreement as to how the parties’ assets will be dealt with. These agreements make provisions for what will occur in the event of a relationship breakdown and do not govern parties’ finances during the period of their relationship.

A binding financial agreement made following the end of a relationship formalises financial separation between the parties and deals with any division of property and other assets. A binding financial agreement is made as an alternative to court orders and, as the name suggests, is binding and enforceable upon both parties. There are a number of provisions that need to be met within the document in order for it to become binding, including independent financial advice for both parties.

The law relating to binding financial agreements is complex and the agreements themselves are often technical and rigorous. As binding financial agreements remove the jurisdiction of the court (and can only be set aside by the court in limited circumstances), legal advice must be sought as part of the negotiation and drafting process.

At Starling Family Law, we will provide you with thorough advice regarding your binding financial agreement to ensure that the agreement is robust and meets legal requirements.