A Binding Financial Agreement is a written agreement between a married or de facto couple that can be entered into at any stage of the relationship. Commonly referred to as a “pre-nup”, a Binding Financial Agreement entered into prior to separation outlines how the property and financial assets of the parties will be divided if they were to separate. A Binding Financial Agreement can also be entered into after separation and will outline the division of assets decided between the parties.
A Binding Financial Agreement does not necessarily follow the Family Law Court’s normal avenue of division of property or assets; thus, it is imperative that this agreement is carefully drafted and reviewed to ensure it meets all of the legal requirements so that it may be upheld should it be challenged. By entering into a Binding Financial Agreement, the parties are essentially electing to enter into a contract stating that they agree for the Family Law Act not to apply to their matter.
A Binding Financial Agreement considers a range of issues relating to the finances of both parties, this may include:
- Distribution of property;
- Debts and other finance matters;
- Spousal maintenance; and
- Other matters
Although a Binding Financial Agreement can be executed at any point during the relationship, it is recommended that such agreements are considered prior to living together or marriage.
How can we help?
The Family Law Team at Coutts have extensive experience in negotiating and drafting Binding Financial Agreements, tailored for the individual needs of the client. It is imperative that you receive legal advice before entering into a Binding Financial Agreement and our Lawyers are more than happy to assist.
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