There are many things to consider when considering the pros and cons of the binding financial agreement. First, a binding financial agreement can be a kind of „relational insurance.“ The Family Law Act of 1975 (Cth) provides that parties to a marriage or, de facto, enter into a binding legal agreement on financial arrangements when their marriage or de facto relationship breaks down. Such an agreement is merely a contract between a couple in which they establish their financial separation agreement in the event of a breakdown of their marriage or a de facto relationship. Binding financial agreements (BFA) are written agreements that define how your assets will be split in the event of separation. It encompasses both de facto and marriage relationships. They are often called marital agreements. The Marino Law team fully supports the implementation of a binding financial agreement as part of a general asset protection strategy or as a method of amicable resolution and documentation of your real estate transaction agreements. First, it would serve as a safety net, whether or not it is used at the end. Second, it can allow a couple to decide in advance what they might quantify as an equitable allocation of financial assets, resources and commitments. It may also mean that the definition of provisions, while the relationship is happy if a binding financial agreement is reached before separation, means that the agreement probably reflects what both parties would accept is reasonable. You should seek legal advice before deciding what to do.
A lawyer can help you understand your legal rights and obligations and explain how the law applies to your case. A lawyer can also help you reach an agreement with the other party without going to court. Marino Law is available to provide effective, cost-effective and informed representation in negotiating the terms of a BFA, to create a BFA and advise you. Our expertise focuses on the critical assessment of your existing BFA and the possibility of requesting the cancellation of the agreement taking into account the circumstances that existed at the time of the contract, or your current and modified circumstances. It is important to act quickly if we consider that it is necessary to set aside a binding financial agreement. Finally, a binding financial agreement may be a more economical and simpler solution than other options after separation. This could include the higher cost of attempting to negotiate a transaction or the Court of Justice`s decision on the allocation of assets and financial resources. Family courts do not make agreements simply because they are unfair. There must be behaviour such as fraud, coercion, unacceptable behaviour or significant non-disclosure before a Court of Justice considers intervening in the agreement.
Now that you have read the potential drawbacks of a binding financial agreement, you can also read the benefits and benefits in our fact sheet What are the benefits of a binding financial agreement for me. It is the duty of counsel to ensure that the document is drafted in accordance with the corresponding section of the Family Act 1975 (Cth) (FLA). If you are thinking about a marriage or want to get married and do not meet the requirements of a common-reason relationship, since you have lived together for two (2) years, your contract is under 90B FLA. The Family Act gives the court the power to invalidate a financial agreement and to cancel it in a number of circumstances. A binding financial agreement is essentially a contract. Therefore, as in contract law, it is always preferable to have such an agreement in writing in order to protect both parties.