If you are planning on getting married, registering your de facto relationship or getting a divorce, it’s likely that you’ve heard the term ‘binding financial agreement’ (BFA) thrown around.
Couples who are at a crossroads in their relationship might ask, “what do I need to know about a binding financial agreement?”
Take a look at this breakdown of the definition and various types of agreement, and consider getting in touch with a Cairns family law specialist so you can move forward with a better knowledge of your legal situation as a couple.
What is a binding financial agreement?
A BFA is defined as an agreement between de facto, engaged or married couples regarding your assets, liabilities and financial resources. The agreement is designed to protect your income, property and future children should something in the relationship go wrong.
If both parties in the relationship have signed the BFA, it means they lose the right to ask the Cairns court to decide the division of property and finances and must default to the information on the agreement.
What are the different kinds in Queensland?
The exact definition of a BFA differs from place to place, but what are binding financial agreements like in Queensland? Here is a breakdown of the five main types of binding financial agreements recognised by the Queensland legal system:
1. Pre-nuptial agreements
2. Post-nuptial agreements
3. Cohabitation agreements
4. Divorce agreements
5. Separation agreements
The agreement is designed to protect your income, property and future children should something in the relationship go wrong.
One of the most common issues regarding binding financial agreements is the validity of them.
Unfortunately, many couples draft what they imagine to be legally binding documents without verifying them – such agreements made without the oversight of a family lawyer can be easily overturned in court.
Another common issue couples in Queensland face occurs if they have already begun living together, had a baby or even gotten married without having signed a BFA.
They assume that since they didn’t get a prenuptial agreement, they are on their own should the worst happen – luckily, it is never too late to enter into a binding financial agreement.
If you and your significant other are considering getting married, living together or separating, one of our Cairns family law solicitors would be happy to help you draft a binding financial agreement. Get in touch with our team today.