In Australia, couples can now legally enter into a Binding Financial Agreement that sets out how all or any of their property and/or financial resources can be dealt with and divided in the event of a future separation.
The Family Law Act allows parties to enter into Financial Agreements both before, and after marriage or if you are in a de facto relationship.
A Binding Financial Agreement (BFA) that is entered into before marriage is commonly known as a pre-nuptial agreement. De facto couples (in most states including Queensland) can now also enter into similar agreements both before and during their relationship.
Commonly, we find that the BFA is useful for protecting ownership and retention of other assets that a party may bring into a relationship (for example a rural property handed down through generations to one of the parties).
BFA’s are also useful regarding inheritances or gifts that are received by a party during the relationship can be quarantined and retained absolutely by that party in the event of a future separation.
It is important to remember, that a BFA is of no force and effect unless they are binding and drafted in such a matter as to make them Binding under the Family Law Act. You should avoid so called easy downloadable ‘kits’ from the internet and other databases of precedent clauses.
At Hartley Healy our team of family law specialists can prepare and draft the specific agreement relevant to the circumstances of your case. We will be able to ensure that the agreement is drafted to comply with all the strict legislative requirements contained in the Family Law Act.
If you wish to organise a binding financial agreement, please contact us to make an appointment.