Binding Financial Agreements (BFAs) are legally binding agreements between couples in a de facto relationship that outline how their assets and finances will be divided in the event of a separation or divorce. These agreements can also be referred to as prenuptial agreements.
A de facto relationship is a domestic partnership between two individuals who are living together in a committed relationship, but are not legally married. These relationships are recognized under Australian law and can include same-sex couples.
BFAs were introduced in 2009 as part of the Family Law Act and have become an increasingly popular tool for couples looking to protect their assets and finances prior to entering a de facto relationship. BFAs provide couples with the ability to define how their property, financial resources, and debts will be divided if the relationship breaks down.
The agreements can cover a wide range of issues such as the distribution of assets, spousal maintenance, superannuation, and the division of debts. The purpose of a BFA is to provide clarity and certainty for both parties in the event of a separation or divorce.
It`s important to note that BFAs can be entered into at any time during the de facto relationship, and it`s not necessary to be planning on separating or divorcing. Many couples see a BFA as a practical and responsible way to manage their finances and protect their assets.
To be legally binding, both parties must seek independent legal advice before signing the agreement. A lawyer must also sign a certificate confirming that legal advice has been provided.
It`s also essential that both parties fully disclose their financial circumstances before entering into a BFA. This includes any assets, financial resources, and debts.
Overall, BFAs provide couples in de facto relationships with a legal tool to manage their assets and finances in a practical, responsible, and legally recognized way. While it might not be a romantic topic to discuss, it`s an important conversation for any couple to have to ensure their financial future is secure.
