Binding Financial Agreement Post Separation: What You Need to Know
Going through a separation is a difficult process, especially when it comes to dividing your assets and finances. However, a binding financial agreement (BFA) can simplify the process and provide peace of mind for both parties involved.
A BFA is a legal document that outlines the division of assets and liabilities after a separation. It is a private agreement between the parties and can be made at any time during the relationship or after separation. Once signed, a BFA is a legally binding document and can only be set aside in limited circumstances.
The key advantage of a BFA is that it eliminates the need for court intervention and allows both parties to make their own decisions about the division of their assets and liabilities. This can save time, money and the emotional stress of going through a court process.
A BFA can cover a wide range of issues such as property, superannuation, and spousal maintenance. It can also be used to protect assets such as inheritances, gifts and future earnings.
However, it is important to note that a BFA must be carefully drafted and comply with legal requirements. Both parties must obtain independent legal advice before signing the agreement to ensure that it is fair and reasonable.
A BFA can also be set aside in certain circumstances such as fraud, undue influence or a significant change in circumstances. It is important to review and update the BFA regularly to ensure that it remains relevant and reflects any changes in the parties’ circumstances.
In conclusion, a BFA is a valuable tool to simplify the process of dividing assets and finances after a separation. It allows the parties to make their own decisions and can save time and money by avoiding court intervention. However, it is important to seek legal advice and ensure that the BFA is carefully drafted and complies with legal requirements. Regular review and updating of the BFA is also essential to ensure that it remains relevant and effective.