Parties who are either considering marriage or commencing a de facto relationship can enter into a ‘pre-nuptial agreement’ which is now called a Binding Financial Agreement (BFA). Recent changes to the law mean that couples can now enter into a BFA before they marry, or commence living together, whilst they are living together or when the relationship has broken down.
Entering into a BFA will provide certainty and protect the ownership of assets that one party has brought into the marriage or relationship. These agreements also provide both parties peace of mind in relation to financial matters in the event of a relationship breakdown.
The BFA can deal with how, in the event of a breakdown of the marriage, all or any of the property or financial resources of the parties are to be dealt with. It can deal with the property in existence at the time the BFA is made and can also deal with assets acquired at a later time.
A BFA is a contract that binds both parties. In order for it to be binding it must comply with strict legal guidelines that relate to both the form and the content of the BFA. So that the utmost protection can be given to the parties it is important that the BFA is drafted by a Family Law Solicitor who has experience in this area.
A BFA can only be set aside in very limited circumstances, such as if the agreement was obtained by fraudulent conduct, if it does not meet the legal requirements or if circumstances have arisen between the parties which have made the BFA impractical to be carried out.
One of the biggest benefits of entering into a BFA is that it prevents the need for costly, lengthy and emotionally distressing litigation in the event that a marriage or relationship does break down. We encourage you to contact Solari & Stock and speak with our Family Law team about entering into a Binding Financial Agreement without delay.