What is a Binding Financial Agreement?
The Family Law Act 1975 has a provision for a “Binding Financial Agreement” (BFA,) a legally enforceable separation agreement that specifies a financial arrangement between a separating couple. A BFA can also be referred to as a “deed of separation” or “property settlement agreement.” The purpose of a BFA is to provide each party with certainty about how their assets and debts will be divided, to lower legal costs and to avoid the animosity of legal proceedings. Due to the many strict rules of the Family Law Act, it is important to have your BFA drafted and executed with the assistance of an experienced Australian Family Lawyer.
Some BFA Requirements
- The document must be in writing and signed by all parties;
- Each party must provide a Certificate of Advice, showing that they have received legal advice from an Australian lawyer;
- The Certificates of Advice must be properly exchanged;
- There must be no coercion, undue influence or duress;
- There must be complete disclosure of each party’s finances.
Who Can Use a BFA?
BFA’s can be used by married couples who wish to separate, and also by couples in de facto relationships, including same-sex couples. A BFA can be entered into before a relationship commencing, during the relationship or after separation.
What About Children?
It should be noted that BFA’s can only cover financial property arrangements and cannot resolve parenting arrangments. Children’s issues can be resolved by entering into a Parenting Plan or Consent Order Agreement.
Who Should Draft and Execute a BFA?
There are many advertisements for online services where you can download a template and write your BFA, but experienced Australian Family Lawyers know that this type of BFA is very often deemed invalid when contested, and therefore does not provide real financial security. A Family Lawyer will ensure that your agreement is valid and properly executed: a worthwhile investment.
Call us today to see how we can assist you in protecting your future!