Binding Financial Agreements
Binding Financial Agreements (BFAs) can be useful if you plan to marry or live with someone in a de facto or genuine domestic relationship or plan to have children. It allows you to consider how your property will be divided if you separate in the future. While at first, it may seem pessimistic to think that your relationship or marriage may not last, it is far better to have certainty about what you both agree should happen with your individual and joint property and other financial issues in the event the relationship ends rather than having to cope with both the emotional upheaval and financial uncertainty at a very stressful time. BFAs can also be entered into during a marriage or de facto relationship and after separation or divorce.
Financial Agreements we can help with:
- Dividing or transferring real estate, investment properties, shares, bank accounts, jewellery, furniture, etc;
- Splitting superannuation funds;
- Quarantining or dividing inheritances, gifts, or other lump sum amounts;
- Quarantining or dividing an interest in a trust fund;
- Spouse maintenance;
- Determining the ownership, management and control of a business or company;
- Assets which you already own;
- Assets which you expect to receive later, such as an inheritance, gifts, compensation monies, etc;
- Interests in a business or a company;
- Your income;
- Exposure to debts;
- Your children and other people who are financially dependent upon you.
A BFA can therefore be important to protect existing and future assets. However, they are not appropriate for all situations. There is regularly developing law about the enforceability of some BFAs and in some circumstances they may be set aside.