A binding financial agreement is a private agreement between the parties. The family court therefore reserves jurisdiction to find that the agreement reached by the parties is not in accordance with the law and its disability. A binding financial agreement is therefore not an agreement engraved in stone that protects assets from the other spouse`s debts. It is always possible that the binding financial agreement could be annulled by the family court in the event of a challenge. With mutual signature, the binding financial agreement enters into force and is legally binding, unless the agreement expressly specifies that it will enter into force at a later date. We always inform our clients that agreements should be developed by a lawyer who specializes in this aspect of family law in order to minimize the potential for legal challenge and, if applicable, annulled. Each party must set out its assets, commitments and financial resources in the binding financial agreement in a transparent and open manner, otherwise there is a significant risk that the agreement will be annulled by the family court. To simplify, a binding financial agreement allows the parties to conclude a binding agreement on the sharing of their assets at the time of separation. They are a contract between a person and his partner in which they define their financial separation agreement in the event of a breakdown of their marriage or a de facto relationship. To the extent that it is considered valid, the family court will enforce the agreement. In other words, the parties cannot ask the family courts for a transaction or agreement with the maintenance of ownership that is contrary to the terms of the agreement signed by the parties. As part of this service, our family lawyers will also advise you on how the family court can distribute your assets if there is no binding financial agreement, so that you know if you would be at a disadvantage when entering into such a financial agreement.
Our family lawyers can also advise you on whether you have reason to cancel a binding financial agreement if you are subsequently dissatisfied with the terms of the agreement. Once the terms of the financial agreement have been agreed and have entered into good shape, each party must obtain independent legal advice. The cancellation of a financial agreement can only be ordered in limited cases. The Court may issue a decision to annul if and only if the Court is satisfied: a binding financial agreement does not deal with child custody agreements. As a result, the High Court found that there was both unacceptable behaviour and inappropriate influence by Mr. Kennedy on Ms. Thorne. However, this is a case of extremes. In most cases, the parties act reasonably and want to protect only a few modest assets that they may have inherited from a family relationship, financial winds obtained before the marriage/relationship or received in the form of a real estate account of a previous marriage.
Spouses considering a binding financial agreement should bear in mind that there is always a risk that such BFA or marriage agreements may be cancelled in the absence of guarantees in disputes. Therefore, if you are considering entering into such an agreement, it is important that you first call for legal advice to carefully verify whether such an agreement is appropriate in your circumstances. Second, if you decide to pursue such an agreement and both parties have provided proper publicity of all relevant circumstances and the terms of the agreement are fair and fair to both parties, such agreements can nevertheless be useful in ensuring security in the event of an interruption of the relationship. Compelling financial agreements (BFA) are “financial” agreements used in family law. They are often commonly referred to as pre-marriage or marriage contracts. BFA are concluded before, during a marriage or a de facto relationship or after a marriage or a de facto relationship.