Keeping it out of Court
Daniel Myers highlights the value of a Binding Financial Agreement as an effective asset protection tool and preventative law strategy
The idea of a “pre-nup” or Binding Financial Agreement (BFA) as it’s legally known, has traditionally been considered a romance killer, a reflection of a lack of commitment towards a relationship or associated with a stereotypical marriage of a celebrity or business mogul.
However, everyday Australians are increasingly realising pre-nups can be a practical form of insurance against financial loss, that often accompanies the end of a relationship. Statistics show about a third of marriages end in divorce and the rate of relationship breakdown is even higher for de-facto relationships.
Agreements can be entered into before, during or after a marriage or de-facto relationship and can avoid expensive litigation. Once a Binding Financial Agreement is made under the Family Law Act 1975, a Court cannot make orders about property or a financial resource which has already been dealt with by an Agreement.
A binding financial agreement can help you with:
• Asset quarantine from a couple’s asset pool;
• Fair treatment of the initial and ongoing financial contribution of the parties;
• Spousal maintenance;
• Superannuation entitlements;
• Blended family protection for initial and subsequent relationships;
• Protection of third party rights in a financial relationship;
• Significant gifting during relationships; and
• Substantial debts of one party to a relationship
Binding Financial Agreements can be an effective way to protect a person’s assets as life changes. We think everyone should consider the benefits of a BFA in the same way they take out insurance, establish buy/sell agreements or shareholder agreements in a business. For further information please contact Daniel Myers, Family Law Principal-Solicitor at RB Flinders, 03 8673 5512, firstname.lastname@example.org
About the author
Daniel MyersPrincipal Solicitor/Accredited Mediator
Daniel heads up the firm’s family law practice. Having grown up in Manchester, Daniel has been a proud Melbournian since 2007. He’s since practiced exclusively in all aspects of family law matters, including both simple and complex property and parenting disputes. Daniel’s experience also includes working for five years as a volunteer at the Fitzroy Legal Service family law clinic.<...