BINDING FINANCIAL AGREEMENTS
Binding Financial Agreements can help married or de facto couples decide how property, financial resources, liabilities and, in some cases, maintenance will be dealt with if their relationship ends. An agreement may be made before, during or after a marriage or de facto relationship.
These agreements involve strict legal requirements and are not appropriate for every situation. Each party must receive independent legal advice before entering into the agreement. We provide clear, practical guidance on whether a financial agreement may be suitable and the steps required to prepare, review or respond to one carefully.
WHAT IS A BINDING FINANCIAL AGREEMENT?
A Binding Financial Agreement is a written agreement made under the Family Law Act 1975. If properly prepared and legally binding, it can determine how specified property and financial matters will be dealt with without those matters being decided through property proceedings in Court.
An agreement may address the parties’ entire financial relationship or only particular issues, depending on their circumstances and intentions.
WHEN CAN A FINANCIAL AGREEMENT BE MADE?
Financial agreements can be made before, during or after a marriage. They can also be made before, during or after a de facto relationship.
The appropriate agreement and the matters it should address will depend on the stage of the relationship, the assets involved and what each party is seeking to achieve.
WHAT CAN A FINANCIAL AGREEMENT COVER?
Depending on the circumstances, an agreement may address how property, financial resources and liabilities will be treated if a relationship ends. It may also include provisions concerning spousal or de facto maintenance.
Careful disclosure and precise drafting are important to ensure the agreement accurately records the parties’ intentions.
WHY INDEPENDENT LEGAL ADVICE MATTERS
Each party must receive independent legal advice from an Australian legal practitioner before entering into a financial agreement. This advice covers the effect of the agreement and the advantages and disadvantages of entering into it.
One lawyer cannot provide independent advice to both parties. Each person will need their own lawyer before the agreement is signed.
CAN A FINANCIAL AGREEMENT BE SET ASIDE?
Although financial agreements are intended to provide certainty, the Court can set an agreement aside in certain circumstances. Issues may arise where legal requirements were not met, material information was not disclosed or another statutory ground applies.
Obtaining advice early can help identify potential concerns before an agreement is prepared or signed.
GET CLEAR ADVICE
Whether you are considering a financial agreement, have been asked to sign one or need advice about an existing agreement, we can help you understand your position and the steps ahead.
SPEAK WITH A FINANCIAL AGREEMENT LAWYER
Get clear advice about preparing, reviewing or responding to a Binding Financial Agreement before making important financial decisions.
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Property Settlement — understand your options for resolving property and financial matters
Divorce — information about ending a marriage and related legal issues
Family Law — explore our broader family law services
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