BINDING FINANCIAL AGREEMENTS | BFA
FINANCIAL AGREEMENTS
Parties who agree on arrangements for their finances and property can formalise the agreement outside of Court by entering into a Financial Agreement.
A Financial Agreement is a contract between two or more parties (married or de facto) under the Family Law Act. A binding Financial Agreement ousts the Court’s jurisdiction about the specific issue which is the subject of the Financial Agreement.
A Financial Agreement can cover all the aspects of finances and property of the parties or can be limited to a specific issue.
TYPES OF FINANCIAL AGREEMENTS
1. MARRIAGE
Parties can enter into a Financial Agreement before, during or after their marriage.
2. DE FACTO
Parties can enter into a Financial Agreement before, during or after their de facto relationship.
ADVANTAGES OF FINANCIAL AGREEMENTS
Advantages of Financial Agreements include:
- the parties have all the power to negotiate the terms of the agreement,
- simple and cost effective,
- terms of the Financial Agreement are not disclosed and do not form part of the public record,
- parties must receive independent legal advice,
- Financial Agreement can be entered into pre, during or post relationship (marriage or de facto)
DISADVANTAGES OF FINANCIAL AGREEMENTS
Disadvantages of Financial Agreements include:
- no requirement to provide ‘full and frank’ disclosure,
- more grounds to be set aside than consent orders,
- no requirement that the Financial Agreement be just and equitable,
- no register of Financial Agreements and parties must keep the original in a safe location,
- cannot adequately provide for unforeseen future events.
For a consultation with a Family Lawyer, call AMA Legal on (02) 8610 3764.
