Sometimes it is said that love is blind – which is exactly why you need a Binding Financial Agreement (BFA).
I have been requested to follow up on my previous newsletters regarding BFA’s.
Statistics reveal that one of the primary sources of marriage failure resides with financial matters. Many couples are coming together later in life or with blended families with assets accumulated by their hard work prior to meeting. To ensure that a relationship is not disturbed by the concerns of children or the fears of loss I believe that it is essential to consider the protection of assets gained prior to a relationship be protected. If you are commencing a new relationship either by way of a de facto relationship or by marriage, you are able to protect these assets with a Binding Financial Agreement (BFA).
A BFA can be made before, during or after a marriage or de facto relationship. The Family Court is a court of fairness and any application to vary a BFA starts from the position that a BFA is binding contract and will not disturb it unless there are extenuating circumstances. There are several circumstances that will persuade a court to vary a BFA. To make a decision, the court will examine the particular circumstances. Such matters would include whether the needs of the children of the relationship are properly provided, whether there is a special need of one party or whether fraud or coercion has resulted in the signing of BFA.
I recommended that you have a BFA for the following reasons:
- To protect your assets in the event of any breakdown;
- To provide clarity for any children from your prior relationships;
- To provide a clear understanding between each other to prevent any future misunderstandings regarding your financial affairs.
It should be noted that the legislation does not provide for amending a BFA. However, a BFA may be terminated on its own or replaced with a new BFA. In both cases each party must be provided with independent legal advice.
I have assisted many clients to draft BFA’s to ensure sensitivity and compliance with legislation. Your BFA must faithfully reflect your situation and future financial position. If either you or anyone you know would like to discuss this matter, please do not hesitate in contacting me.
Have a wonderful day,
0419 233 670
ps. I am available to discuss matters either in my office or by Zoom conference; and
provide notary services which must be in person.