Caldwell Martin Cox Solicitors : Family Law : Financial Agreements / Pre Nuptial Agreements
We have all heard of American Pre-Nuptial Agreements but is it possible for Australians to benefit from them too ?
Binding Financial Agreements (commonly referred to as Pre-Nuptial Agreements) under the Family Law Act are contracts entered into between the parties to a relationship which determine how their assets and liabilities will be treated in the event of a separation. Australian law allows BFAs to be entered into both by married people and by people living in a defacto relationship.
The legislation which governs these types of Agreements is very strict so care needs to be taken to ensure that the Agreement is prepared properly by a Family Lawyer experienced in the area. If the Agreement is prepared properly, the parties forego the right to take the matter to Court and they retain control over the division of their assets and liabilities. This can have substantial benefits in avoiding the financial and emotional expense of later Family Court litigation.
But if the Agreement is not prepared to the exacting standards required by the Family Law Act and the current case law, the parties run the risk of their Agreement being overturned by the Court. For example, it is essential under the Family Law Act that independent legal advice is obtained by each party before the Agreement will be valid and binding.
It is important to note that these Agreements are not suitable in all circumstances. Agreements are ideal for:
- couples who have been married or in a de facto relationship previously
- couples where one or both have significant assets
- couples unlikely to have more children
- where one party has children from a previous relationship
- where parties wish to keep pre-marital assets separate
- where one party is concerned about the other party’s debt
Binding Financial Agreements Fact Sheet
For further information and assistance please call or email Vicki Andrews of our Family Law Team.
Visit our Reading Room for more information on Family Law issues.
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The information you obtain at this site is not, nor is it intended to be, legal advice.
You should consult a lawyer for individual advice regarding your own situation.
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