What is a binding financial agreement?
A Binding Financial Agreement is a private contract between two parties in which they are effectively finalizing property settlement and spousal maintenance issues outside of the Court.
Also referred to as “pre-nups”, binding financial agreements are created between parties of a relationship or marriage to legally protect and allocate assets if the event the marriage ceases. Whilst many people believe planning for divorce before the marriage begins is controversial, a binding financial agreement is prudent estate planning, similar to preparing a will or enduring power of attorney.
Requirements of Creation
To create a binding financial agreement, several requirements must be met in accordance with the Family Law Act, including:
- Each party receiving independent legal advice;
- Both party’s lawyers signing a certificate that advises has been provided; and
- Both parties acknowledge they have received said advice.
If these requirements are not met, the agreement can be set aside. In addition to failing formal requirements, the agreement may also be set aside in circumstances where:
- The agreement is subject to fraud;
- There has been a martial change making the agreement impractical; or
- The effect of the agreement would cause hardship on one party where a child is involved.
To ensure your binding financial agreement will hold up in court, speak to one of our Accredited Family Law Specialists today to discuss what options are available.
For more information or If you need any help please contact the Brisbane Family Lawyer team today for a FREE, no-obligation 20-minute consultation.
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