While no one enters into a relationship or marriage expecting to separate, a financial agreements document can give you assurance that your assets are protected in the event things don’t work out.
Binding Financial Agreement (BFA) & Prenuptial Agreements
A Binding Financial Agreement (BFA) is a formal document that records how assets and spousal maintenance are to be dealt in the event you were to separate. While no one enters into a relationship or marriage expecting to separate, this type of document can give you assurance that your assets are protected in the event things don’t work out.
They can also be used to protect assets/property or funds provided by parents or family in the event of separation.
BFAs can be entered into:
- before your de facto relationship / marriage;
- during your de facto relationship / marriage; or
- after you separate / divorce.
BFAs need to be drafted in accordance with strict requirements in order to be valid and legally-enforceable. Whether drafting or reviewing, we deal with BFAs with the high level of care, skill and detail that they require, so that you have peace of mind that your document is secure and protects you well.
Frequently Asked Questions
How secure is a BFA?
There are multiple ways a BFA can be set aside and it is not without risk. However, as long as care is taken around mitigating those risks and the BFA is well-drafted, it will usually provide you with significantly more protection than not having one.
What if we separate without a BFA?
If you don’t enter into a BFA, then in the event that you and your partner separate and can’t reach an agreement, the only way for your assets to be divided legally is via the Court.
Does a BFA protect my estate in the event I were to pass away?
A BFA only deals with what happens to your assets and payment of spousal maintenance in the event you separate. However, it may be relevant to the administration of your estate in that it could serve as evidence of your intentions.
