Who Is Eligible For A Binding Financial Agreement?
If you're in a relationship, the idea of legally determining who should get what if that relationship was to break down is not a particularly romantic prospect. However in today's world, it's a reality that if a relationship does end, the division of assets and property can be messy and difficult, and a predetermined arrangement protects both parties from the stress of splitting assets after the fact.
Binding financial agreements (BFA) or prenuptial agreements as they are commonly known as are not, however, only available to couples getting married. Here's a rundown of who is eligible for a BFA.
- De facto couples. Today, the law recognises a whole variety of relationships, including de facto relationships involving two people who are not legally married and are not related by family but who live together in a relationship as a couple on a genuine domestic basis. Understanding your legal rights if you are in a de facto relationship is important, because partners in a de facto relationship now enjoy similar legal rights to married couples. De facto couples can therefore draw up BFA's either before, during or after they start living in a defacto relationship that determines the financial agreement under which the relationship is entered and how assets are to be divided if and when the relationship ends. If you're looking for a de facto lawyer, Sydney has a number of experienced lawyers on offer.
- Engaged to be married couples. The most common time for a BFA to be drawn up is when two people are planning to enter into a marriage. Common reasons for couples to have a BFA are if one partner is wealthy prior to entering into the marriage; there is a need to provide for children from a previous relationship; or if either or both parties simply don't want to end up in court.
- Married couples. You can also create a BFA during a marriage that concerns a couple's separate and shared assets.
- Divorced couples. If a marriage has been dissolved, a BFA can still be drawn up that divvies up the assets without the couple having to go to court.
Before a BFA is binding, each party must obtain independent legal advice from a legal practitioner who is required to also provide a statement confirming that independent legal advice was provided before the BFA was signed.
BFAs, and advice about them, are best prepared by qualified, specialist family lawyers. Sydney has an experienced pool of family law firms that can help those deciding on whether or not to get a BFA make the right decision for them.