What is a Financial Agreement?
Sometimes called a Binding Financial Agreement (BFA), it is a legally binding contract between you and your ex-partner to formalise an agreement about the division of your assets, superannuation and/or maintenance.
This type of agreement allows parties to "contract out" of the Family Court's usual power to make property settlement orders, providing financial certainty and potentially avoiding future litigation costs and stress.
Key Details of a Financial Agreement
Purpose: To create a formal, legally enforceable plan for asset division without the need for court intervention, offering more control and privacy over the outcome.
Timing: Agreements can be made at various stages of a relationship, including:
Before marriage or a de facto relationship (prenuptial or cohabitation agreements).
During the marriage or de facto relationship (postnuptial or continuing relationship agreements).
After separation or divorce.
Content: The agreement can cover a wide range of financial matters, including:
Division of real estate, business assets, and investments.
Superannuation entitlements.
Ongoing financial support or spousal maintenance.
Protection of pre-existing assets, inheritances, or family businesses from claims by the other party.
Enforceability: If properly executed, it ousts the jurisdiction of the Federal Circuit and Family Court of Australia regarding property settlements.
