A divorce can be accompanied by a variety of negative emotions, including stress, anxiety, and despair. If you incorporate arguments about money and property, you could end up in an unbridgeable position.
We think a Binding Financial Agreement (BFA) may be beneficial for some couples. You’re probably more familiar with the terms “pre-nups,” “post-nups,” or “cohabitation agreement,” even though this is the word used by the courts. Although it is often assumed that these contracts are formed at the beginning of a relationship, BFAs can also be utilized after a split. BFAs, for example, can be used both before and after your separation, whereas prenuptial agreements may specify payments if you divorce.
As a result, you may already have a lot of questions concerning BFAs created following a separation. We will answer our most frequently asked questions regarding the subject, as well as help you decide if this is the right path for you and your partner.
Why should I pursue a BFA after separation? – Can’t the courts just settle this?
Entering a BFA after separation can be useful for a variety of reasons. Working together, in our opinion, can be quite useful in maintaining a cordial relationship after a divorce. A BFA can be an excellent way to provide couples the opportunity to regain control of their divorce by allowing them to draft a formal, mutual agreement addressing property settlement.
Court costs and excessive litigation are both emotionally and financially demanding. In a sense, signing a BFA “contracts you out” of the Family Court’s rules. This prevents the courts from becoming involved and allows you and your ex-partner to strike a swift and amicable agreement. In the absence of the courts, you and your partner can approach your separation with more interest than position.
What does the word “binding” in “BFA” mean?
Because a BFA is a private agreement between you and your partner, it is considered binding. In essence, you can manage your whole property settlement outside of the court system (and on your own terms), rather than dealing with the complexities of family courts. You would be bound by your own agreement rather than the courts.
Can I enroll in a BFA if I am not married and have lived with my partner for a while?
Any couple, whether married, de facto, or in a same-sex partnership, can sign a BFA.
Do I need a solicitor to sign a BFA?
A binding financial agreement is not a simple document to create and sign. They are legally binding documents that must be drafted with care. Asking a lawyer for assistance with your BFA is thus a suggested approach. After all, you want to make sure you know exactly what you’re getting into and whether the arrangement you’re about to make has any advantages or disadvantages.
A well-written and detailed BFA is worth the investment, even if it appears more cost-effective to print from a template and save money.
When and how do we begin the procedure?
BFAs must meet severe requirements to be considered “binding.” As a result, it is critical to engage with a lawyer with local experience in Brisbane. Both you and your spouse must get independent legal assistance before signing the BFA; one attorney cannot represent both of you. This enables each attorney to provide open and comprehensive advice on the advantages and disadvantages of obtaining a BFA in your profession.
Overall, BFAs after separation can be an excellent way to restore control and support a gracious separation during a sometimes overwhelming and stressful time. Connor Hunter has dealt with BFAs for separated couples. Please contact us if you have any questions.