The law allows for couples to enter into agreements which set out how, in the event their relationship ends, their assets are to be divided between them. These agreements are formally known as “Binding Financial Agreements” but are more commonly referred to as “Financial Agreements” or “BFA’s”.
A Financial Agreement can be entered into:
- Before the commencement of a de facto or spousal relationship;
- During a de facto or spousal relationship; or
- After the breakdown of a de facto or married relationship.
There are strict legislative requirements about what goes into a Financial Agreement, but each document is individually drafted based on the objectives of the parties and the agreement reached. It is essential that both parties obtain their own independent legal advice from a solicitor. This not only protects the individual before entering into the agreement, but also meets the requirements of the Family Law Act.