In Australia, couples can legally enter into a Binding Financial Agreement that sets out all or some of their property and/or financial resources as to be dealt with or divided in the event of separation.
The Family Law Act allows parties to enter into financial agreements both before, during and after marriage or if you are in a defacto relationship. A Binding Financial Agreement (BFA) that is entered into before a marriage is commonly known as a Prenuptial Agreement. Defacto couples, in most States including Queensland, can now also enter into similar agreements before and during their relationship.
Commonly we have found that Binding Financial Agreements are useful for protecting ownership and retention of assets that a party may bring into a relationship. A Binding Financial Agreement is also useful regarding dealing with inheritances or gifts that are received by a party during the relationship which can by virtue of the agreement be quarantined and retained absolutely by that party in the event of future separation.
It is important to remember that a Binding Financial Agreement is of no force and effect unless the Agreement is binding and drafted in such a manner so as to make it binding under the Family Law Act. This is why it is crucial if you are contemplating entering into a Binding Financial Agreement that you seek expert legal advice.
At North Brisbane Law our team of Family Law Solicitors can prepare and draft the specific agreement relevant to your circumstances. We will provide you with comprehensive advice and ensure that the agreement is drafted to comply with the strict legislative requirements set out in the Family Law Act.