A “pre-nuptial” or “post-nuptial” agreements (known as a Binding Financial Agreement (“BFA”)) is an agreement between de facto, soon to be married or already married couples, either before, during or after the breakdown of the relationship. A BFA identifies the couple’s assets as they currently exist and how those assets will be divided if the parties separate.
Often, couples choose to enter into a BFA after their relationship breaks down because it means that they can avoid going to Court. Instead of having a Judge determine how the parties’ assets are separated, the parties can enter into a BFA to determine how their assets are to be divided. This is beneficial because the parties can avoid the inevitable stress and costs associated with litigation.
For a BFA to be legally binding, the each of the parties must provide full disclosure regarding their assets, liabilities and resources, and each party must receive independent legal advice.
It is extremely important that a BFA is drafted by an experience family lawyer otherwise it is likely to be overturned un the event one party changes their mind.