Family Law – Binding Financial Agreements
What is a Binding Financial Agreement?
A Binding Financial Agreement is the proper name for entering into a pre-nup style agreement in Australia.
The Family Law Act provides that couples can enter into legally binding financial agreements before, during or after their relationship. These agreements can be prepared for de facto or married couples.
These agreements can provide you with the peace of mind of establishing, ahead of time, a legally binding settlement arrangement in case your relationship breaks down in the future.
How do we prepare a Binding Financial Agreement?
Binding Financial Agreements are a technical document that must comply with each formal requirement under the Family Law Act or will be invalid when it comes time to rely upon them.
These documents cannot cannot be completed without each party retaining a lawyer. Each party is required to obtain detailed legal advice that identifies the advantages and disadvantages of the agreement, and the effect the agreement on a person’s usual family law rights. The lawyers must each sign legal advice certificates that become part of the agreement.
Do these agreements work ?
For the most part, these agreements, when prepared and completed in a way that meets the technical requirements of the Family Law Act will be binding on the parties. There are some limited way they can be challenged, and the successful legal challenges are usually about things that were or weren’t done at the time that the document was entered into.
So it is important that they are handled carefully and as directed by the Family Law Act.