A Binding Financial Agreement can be entered into before, during, and after separation or divorce. When the Binding Financial Agreement is made after the breakdown of a marriage or de facto relationship, it is usually used as a settlement device. A Binding Financial Agreement entered into before marriage may be more commonly known as a “pre-nup”.
When you enter into a Binding Financial Agreement, you agree to contract out of the laws contained in the Family Law Act 1975 (in the case of people who are or were married) and the Family Court Act 1997 (in the case of people who are or were in a de facto or same sex marriage).
If you feel that you may need the various protections contained in the relevant legislation, it is important to seek legal advice so that you are fully aware of what rights you may be contracting away.
Alternatively, if you specifically want to control your financial affairs without any intervention by the Family Court, you need to ensure that your Binding Financial Agreement is properly drafted so it is actually “binding”. There are very strict legal requirements when creating a Binding Financial Agreement and the agreement can be set aside by the Family Court if it does not comply with the legislation.
Due to the complex nature of Binding Financial Agreements, it is prudent that you seek legal advice before entering into an agreement.
If you are looking to speak to a family lawyer in Perth about Binding Financial Agreements, please contact our office to speak to one of our experienced solicitors.