One might think that a binding financial agreement should be fair to both parties, but this is not necessarily the case. If your agreement comes to court, the courts will not reject or annul an agreement simply because it favours one party over the other. Indeed, Article 90G of the Family Law requires both parties to seek independent advice before signing the contract. This process ensures that both parties understand the financial or other pros and cons of signing the agreement and prevent one of the parties from going to court with the excuse of not knowing what they signed at that time. If you live with someone or intend to live with someone and want to protect yourself from a possible right to your property in the event of a subsequent separation, you should consider a binding financial agreement (“BFA”). Also known as marriage contracts or de facto agreements, they are fully enforceable in the Family Court of Australia and can be signed before or after moving in, or before or after marriage, and also apply to same-sex couples. Many people think that they can design something themselves and especially think that if they include the formal document as a signed treaty or a legal statement signed by a justice of the peace, the document can be reliable and will be sufficient to protect their financial position and property. While agreements first result in one of the parties applying to the family court for the division of property, the purpose of introducing binding financial agreements is to encourage couples to agree on exactly how their marital property will be distributed in the event of separation or separation. This can be very reassuring if you have already suffered the collapse of a marriage. An agreement after divorce should avoid the need for legal proceedings. It is a versatile document, as it can be entered into after the divorce to register a property division agreement between the parties. To annul a binding financial agreement, a party must ask the court to annul the financial agreement. For good reason, a binding financial agreement cannot be reached in a hurry or at the last minute. A marriage contract must be concluded before the marriage or relationship begins.
A binding financial agreement can be reached before the marriage begins or de facto. There is no concept of marriage contract or prenups in Australia. The legislation deliberately does not refer to the notion of “marriage” to distinguish that binding financial agreements are an entirely different term. To conclude a valid agreement, the parties need the participation of 2 experienced and independent lawyers in family law. It can also lead the parties to feel safe when they know that the assets they have accumulated before the relationship or marriage are safe. By reaching a prior agreement, the problems that arise after the separation will instead be implemented without costly legal costs or legal delay. A financial-before-defacto agreement is a financial agreement for parties who intend to settle together but have not yet done so.. . .