Some of the benefits of making a financial agreement are security and control over your future financial situation, privacy before the usual legal proceedings, and the freedom to do things on agreed terms. Financial arrangements can be useful in promoting an amicable and reasonably rapid allocation of assets and liabilities after a relationship collapses. If there is no BFA, each party can rely on their family rights to apply to the family courts. Without a BFA and consensual agreement, their financial future is uncertain, as family courts have a wide margin of financial appreciation. In Part VIIIA of the Family Law Act 1975 (Cth) you will find the legal provisions relating to binding financial agreements for married persons. Part 5A Division 3 of the Family Court Act 1997 (AV) for de facto couples in Western Australia. Part VIIIAB Division 4 of the Family Law Act 1975 (Cth) for de facto couples in other states and territories. In this short introductory video, we look at the circumstances in which you should consider a binding financial agreement. Q: What other names are BFAs known for? A: Mandatory financial agreements are also called marriage contracts, inheritance agreements, concubine agreements, separation agreements, and divorce agreements. You can apply to the Family Court or the Federal Circuit Court for financial orders. For more information, see « If you disagree on real estate and finance. » A court can annul and annul the agreement.
The situations in which this is possible are provided for in section 90K (married couples) and section 90UM (de facto couples) of the Family Law Act 1975. BFAs offer peace and protection to new couples before saying « yes » or establishing a new de facto relationship. They are an indispensable instrument for financial planning and beyond. In the video series below, Justine Woods, CGW`s family law partner, discusses what you need to know about binding financial agreements for married and de facto couples, including the pros and cons, risks and potential loopholes, and what the process is likely to result in. To conclude a valid agreement, the parties need the participation of 2 experienced and independent lawyers in family law. Section 90B or 90UB BFA`s describes the assets and liabilities of you and your spouse, including the assets you brought into your relationship and your joint assets at the time of performance of the contract. Your goal is to define the conditions for dividing these assets in the event of separation and to manage the property acquired by your spouse or partner during the marriage or relationship. Sections 90B-90 C of the Family Law Act 1975 deal with financial agreements between the parties to a marriage. Article 90UA-90UN applies to financial agreements entered into by de facto couples.
The Act provides for de facto financial agreements between couples only if, at the time of the conclusion of the agreement, the parties to the relationship had their habitual residence in New South Wales, Victoria, Queensland, South Australia, Tasmania, the Australian Capital Territory, the Northern Territory or Norfolk Island. Establishing a binding financial agreement that meets future challenges is a complex task and lawyers must have a thorough knowledge of all technical requirements. Marriage contracts are an American concept. A marriage contract (or « prenups » or « prenups », as they are sometimes called) is concluded before the parties are married. BFAs are often mistakenly referred to as marriage contracts or prenups….