A Binding Financial Agreement or Pre-Nuptial Agreement can provide certainty and asset protection for couples planning a life together or planning or have already separated.
At whatever stage in your relationship, a Binding Financial Agreement or Pre-Nuptial Agreement needs to be carefully drafted by a lawyer to minimise the risk of a messy property settlement dispute and potential litigation.
At Yarra Family Lawyers, we will carefully draft or review your Binding Financial Agreement or Pre-Nuptial Agreement with care and skill to provide maximum security for you.
Commonly asked questions
What is a Binding Financial Agreement/ Pre-Nuptial Agreement?
A Binding Financial Agreement is a legal document that a couple can enter into and determines how the joint and separate assets are divided should they decide to separate.
A Pre-Nuptial Agreement or Prenup is called a Binding Financial Agreement in Australia.
Most couples who enter into a de facto relationship or are married have an entitlement under the Family Law Act 1975 to claim against the other party in the Family Court of Australia for a percentage of the other party’s property in the event of separation.
A Binding Financial Agreement allows couples to waive or forfeit their entitlement inherited under the Family Law Act 1975 to make a claim against the other party in the Family Court should they separate.
A Binding Financial Agreement allows parties who acquired assets before a relationship to preserve those assets should the relationship break down and avoid costly and lengthy litigation.
For a Binding Financial Agreement to be binding, the Family Law Act 1975 requires that all parties receive written advice from a suitably qualified lawyer before signing the agreement. The written advice should explain the effect of the Binding Financial Agreement on the party’s rights and the advantages and disadvantages of entering into a Binding Financial Agreement.
Who can enter into a Binding Financial Agreement?
Both married and de facto couples can enter into a Binding Financial Agreement at any stage of their relationship, including before, during and after the relationship has broken down.
Why enter into a Binding Financial Agreement?
Most commonly, Binding Financial Agreements are entered into at the commencement of a relationship or in anticipation of being married to provide clarity as to who will retain what assets in the event of separation and avoid costly and lengthy litigation.
A person entering into a new relationship may choose to enter into a Binding Financial Agreement for asset protection purposes or to preserve assets for children from a previous relationship.
Without a Binding Financial Agreement in place, any assets purchased before a new relationship will be considered a joint asset should that new relationship break down.
What can be included in a Binding Financial Agreement?
A Binding Financial Agreement entered into before or during a relationship does not come into force until separation has occurred and either party has signed a separation declaration. Therefore, a Binding Financial Agreement can only provide for what happens to all or some of the joint and separate property, including superannuation, after separation.
Parties may also choose to include in their Binding Financial Agreement how any financial resources are dealt with in the event of separation and any ancillary matters relating to the assets and financial resources of the parties.
How much does a Binding Financial Agreement cost?
The cost of a Binding Financial Agreement can vary significantly because each agreement is inherently different in length, scope, and complexity.
Depending on the complexity, a Binding Financial Agreement can cost anywhere between $1,000 and $10,000. Call us today, and we will offer you a fixed fee package to draft your Binding Financial Agreement.
For expert advice on Financial Agreements and asset protection, contact us today for a free 30 minute initial consult