Binding Financial Agreements on the Central Coast
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Before, during or after the relationship you may enter into a legal agreement, which decides how financial and other affairs, including maintenance and property rights will be arranged. To be enforceable this agreement must comply with precise rules, including independent legal advice for both parties.
A married couple or defacto couple having separated can reach an agreement as to the division of their assets and liabilities.
The agreement can be formalised by Consent Orders or a Binding Financial Agreement. Information you need to know about Binding Financial Agreements is set out below:
The Family Law Act provides for Binding Financial Agreements being made namely:
- Before marriage (Section 90B)
- During marriage (Section 90C)
- After divorce (Section 90D)
- Before defacto relationship (Section 90UB)
- During defacto relationship (Section 90UC)
- After breakdown of defacto relationship (Section 90UD)
BFA Requirements
A Financial Binding Agreement must meet the following requirements in order to be binding, namely:
- Be in writing
- Specify whether it is made under Section 90B, Section 90C, Section 90D, Section 90UB, Section 9UC or Section 90UD
- Be signed by both parties
- Be between parties contemplating entering into a marriage with each other or parties to a marriage or parties to a former marriage
- It must deal with property, financial resources and/or spousal maintenance of the parties or matters incidental or ancillary to those matters
- The Agreement must include a statement that before the Agreement was signed by both parties, that Independent Legal Advice was provided by separate legal practitioners, including the effect of that agreement and the rights of that party and if it was to the advantage or disadvantage of the parties who entered the Agreement at that time.
The Agreement must contain certificates signed by the solicitor for each party providing that the solicitors gave Independent Legal Advice to each respective party. Once the Agreement is signed one party must receive the original Agreement and the other party must receive a copy. The document must specify the extent if any spousal maintenance is provided or not.
Reasons for Binding Financial Agreements
The reasons for Binding Financial Agreements include the following:
- To protect the assets which may be inherited during a relationship
- To protect the assets of one party where there is a significant difference in wealth of the parties
- It can protect prior assets
You need to ensure that when receiving advice about entering into a Binding Financial Agreement, full disclosure of all assets and liabilities are made by both parties and all the above requirements are met in order to be a binding agreement.
Alternatively, parties can obtain Consent Orders that will be orders made by the Court. Call Linda’s friendly team of family lawyers to arrange an appointment.
Frequently Asked Questions
When should I consider entering into a binding financial agreement?
You may consider a binding financial agreement (BFA) at various stages of a relationship. This could be before entering a marriage or de facto relationship, during the relationship or after separation. These agreements can help clarify financial arrangements by outlining how assets and liabilities will be managed. Get in touch with our family lawyers on the Central Coast for more information.
How do I initiate the process of creating a binding financial agreement?
To start the process, it’s essential to seek independent legal advice from a family lawyer on the Central Coast. Both parties must receive separate legal counsel to assess the agreement’s fairness and legal standing. Once the terms are mutually agreed upon, the agreement is drafted, reviewed and signed.
How long does it take to finalise a binding financial agreement?
The time required to finalise a binding financial agreement can vary depending on the complexity of your financial situation and the time taken to negotiate terms. Typically, the process can take several weeks, from the initial consultation to the signing of the agreement. A financial lawyer on the Central Coast can provide more specific timelines based on your circumstances.
Are binding financially agreements legally binding?
Yes, binding financial agreements are legally enforceable as long as they meet the necessary legal requirements. This involves both parties obtaining independent legal advice, providing full disclosure of assets and having the agreement properly documented and signed. It’s important to consult with a family financial lawyer to help confirm that the agreement is valid and enforceable. Contact us today to learn more about financial agreements on the Central Coast.
