Binding Financial Agreement (BFA)
Pre-nuptial agreement is a term that most people understand as an example of BFA. However, you can enter into a BFA at any stage of your married or de facto relationship.
Under a BFA all parties agree that in the event of separation property will be dealt with in accordance with the terms of the BFA. This may mean that you exclude the authority of the Family Court in dealing with your property settlement. The BFA may be set aside in some circumstances. Ask Themis Family Lawyers before signing a BFA to ensure your rights and entitlements are protected.
For a BFA to be binding both parties must obtain:
- Independent legal advice before signing the agreement; and
- Certification from their respective lawyers confirming that they receive independent legal advice and understood the effect of the BFA on their rights and entitlements.
The Family Law Act 1975 provides that the parties can enter BFA in the following situations:
- prior to the marriage (pursuant to section 90B) or prior to commencement of a de facto relationship (pursuant to section 90UB).
- During marriage (pursuant to section 90C) or during de facto relationship (pursuant to section 90UC)
- After Separation
- the married couple can enter a binding financial agreement after separation and do not need to wait to obtain a divorce (pursuant to section 90D).
- de facto couples also can enter a binding financial agreement after separation (pursuant to 90UD).