Binding Financial Agreements:

A binding financial agreement is another name for a pre-nuptial agreement. This agreement makes provision for the way in which property and other assets will be divided if the marriage is not successful. A binding financial agreement is also available for de facto couples. Our Sydney Family Lawyers have extensive experience in advising on and preparing binding financial agreements.

A binding financial agreement is a powerful document. It can be made before, during or after marriage. If made after marriage, the binding financial agreement must be made within twelve (12) months of an order of divorce. The document alters the normal avenue for division of property and other assets. This means that the Family Law Court’s normal jurisdiction to make orders for division of property and other assets will not apply where a binding financial agreement exists. For the agreement to be enforceable, it must comply with Part VIII or Part VIIIAB of the Family Law Act 1975 (Cth) (the Act). It is in your best interests to ensure the agreement is validly executed. Our Family Lawyers can provide you with the quality advice you are looking for.

A financial agreement can cover a range of issues relating to the finances of both parties. Under Section 90D of the Act, the agreement may include:

1. Distribution of property;
2. Debts and other finance matters;
3. Spousal maintenance; and
4. Other matters.

When two people enter into a marriage, the first thing on their mind is generally not divorce or the possibility of divorce. When signing binding financial agreements, parties treat it as a formality and nothing more. Binding financial agreements can have significant legal implications and must not be taken lightly. All property acquired during the marriage is usually in some way accounted for in the financial agreement. You should check that the agreement does not contain any mistakes and is accurate. In the instance of divorce or separation, if drafted and executed correctly, the binding financial agreement will become enforceable. Under the Family Law Act 1975 (Cth), a party intending on signing a binding financial agreement must receive independent advice. Book a consultation with one of our expert Sydney Family Lawyers today by contacting us on (02) 9233 4048 or emailing us at info@navado.com.au. 

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