Binding Financial Agreements QLD
Binding Financial Agreements (commonly known as a BFA for family law) is a legal agreement made between parties before, during or once a relationship has ended. It is this legal agreement which determines the financial arrangement which is to take place either during the term of the relationship or after the relationship comes to an end.
If you have signed a Binding Financial Agreement you agree to how your financial resources, assets, liabilities are to be divided. Therefore if there is a dispute between the parties as to financial arrangements in a Family Court after separation and you have signed a Binding Financial Agreement, then you will lose your right to dispute the division of your financial items. This is because the financial resources will be divided according to what has been agreed in the Binding Financial Agreements.
Binding Financial Agreements Cost
Fixed Fee Brisbane, Gold Coast, Sunshine Coast
Depending on the complexity of your legal matter we can offer a fixed fee for your Binding Financial Agreement. Contact us on (07) 3317 8346 to learn more. With our experienced advice, parties feel secure knowing their financial matters are secure when relationship issues arise.
Why do people enter into a family law Binding Financial Agreement?
- In case of separation, parties have the reassurance that they will receive equitable treatment financially, especially in the cases where large asset are brought into the relationship by one party and not the other.
- Peace of mind especially one party has children or assets that they wish to protect in the case of a relationship breakdown.
- Estate planning – ensuring that property passes through as intended
- People who wish to protect themselves against a possible claim against their assets in the event of separation or sometime in the near future
When does a Binding Financial Agreement become binding?
When the parties to a financial agreement obtain formal legal advice and are issued with a Certificate pursuant to the Family Law Act, then the financial agreement becomes binding on the parties to the agreement.
We recommend each party of the agreement obtain independent legal advice to ensure existing assets are protected and there are agreed property distribution arrangements.
Can you terminate a Binding Financial Agreement?
Yes, but this can only be done in accordance with the Family Law Act which states that parties may terminate the agreement only if:
- Parties include a provision relating to termination in another financial agreement
- Parties draft a written agreement, “termination agreement”
The Act states a number of factors determining when the termination agreement becomes binding, read here.
Who can enter into Binding Financial Agreements?
Pre nuptial agreements can be entered into prior to a couple getting married. However, BFAs are also legally binding for a de facto relationship. A BFA is ideal to avoid unnecessary arguments, reduce financial stress and protect existing assets in the event of a relationship failure.
What else needs to be considered in the dissolution of a relationship?
At the end of a relationship, a BFA only recognises the financial orders and acceptable division of the relationship’s asset pool. If there are children to the relationship, parties must consider child custody and if the parties were legally married, a divorce must be finalised.
Find out more areas of family law that Cudmore is able to assist in.
Effect of Binding Financial Agreement’s upon the death of either party
A binding financial agreement continues to operate despite the death of a party to the agreement and operates in favour of, and is binding, on the legal representative of that party.
The legal representative of a deceased party can then either enforce the BFA or apply to set aside the BFA after the death of a party.
