The breakdown of relationships and separated parents are so common these days that many people, especially at the beginning of a new relationship, worry about doing something to make sure they don`t lose their home, their fortune or a lot of money about their new partner if the relationship doesn`t work. Many people want some kind of “insurance” to protect their partner`s assets, and their financial situation in general when they dissolve and go through a separation or divorce. A binding financial agreement is sometimes called BFA. BFAs often bypass the time, cost and stress of the gang in court. Often, BFAs also have the advantage: you will understand how to enforce your separation agreement for a fraction of the usual costs. Some families try to use loan contracts for funds that parents give to children to help purchase real estate, but unless both spouses sign the loan agreement and the repayment terms are strictly respected, they are considered unlikely to be reimbursed by the family court, which is a gift to both parts of the marriage that can be shared after separation. The discretion of the courts to repeal a binding financial agreement is relatively broad. Therefore, parties and their family lawyers who sign a binding financial agreement must be cautious when preparing and concluding a binding financial agreement. In the preparation of a binding financial agreement, one cannot “cut corners”. If your relationship breaks down, how much money or fortune your partner may have in the end, and get from you, the cost of litigation that can take months or years, not to mention the stress and emotional toll of being involved in lawsuits, is much more expensive and often prohibitive. A binding financial agreement can be a very rewarding investment, not to mention the fact that you are reassured and that both sides agree on what could happen if you resolve. Once the terms of the financial agreement have been agreed and have entered into good shape, each party must obtain independent legal advice.
BFAs can also cover more specific financial matters, including: Part VIII A of the Family Act 1975 (Cth) is the place where you will find the legal provisions applicable to binding financial agreements for married couples. Part 5A Division 3 of the Family Court Act 1997 (AV) for de facto couples in Western Australia. Part VIIIAB Division 4 of the Family Act 1975 (Cth) for de facto couples in other states and territories.