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When Are Binding Financial Agreements Binding

As a leading law firm in Adelaide, South Australia, Wright Street Lawyers specialises in family law matters, including binding financial agreements. In this detailed guide, we will discuss the key aspects that determine the validity and enforceability of binding financial agreements.

Overview of Binding Financial Agreements

A Binding Financial Agreement (BFA) is a legally binding document that sets out how a couple’s property and financial resources will be divided in the event of a breakdown of their relationship. BFAs are commonly used by married and de facto couples to formalise their financial arrangements without having to go through court proceedings.

Requirements for a Binding Financial Agreement

For a BFA to be legally binding, it must meet the following requirements:

  • The agreement must be in writing and signed by all parties.
  • Each party must receive independent legal advice before signing the agreement.
  • The agreement must include a statement signed by each party’s lawyer confirming that they provided advice on the effects of the agreement, its advantages, and disadvantages.
  • The agreement must not be terminated or set aside by a court.

When Are Binding Financial Agreements Binding

BFAs are binding when they meet all the legal requirements outlined in the Family Law Act 1975. However, there are certain circumstances under which a BFA may not be considered binding:

FAQs

If a party fails to disclose their assets in a BFA, the agreement may be deemed invalid and unenforceable. Full and frank disclosure of assets is crucial for the validity of a BFA.

A BFA can be changed or revoked, but it requires the agreement of both parties. Any changes to the BFA should be documented in writing and signed by all parties involved.

No, Binding Financial Agreements can be used by both married and de facto couples to formalise their financial arrangements.

Seek Legal Advice from Wright Street Lawyers

If you are considering entering into a Binding Financial Agreement or have questions about the validity of an existing BFA, contact Wright Street Lawyers today. Our experienced family law team in Adelaide, South Australia, can provide you with client-focused advice and representation tailored to your specific circumstances.

Don’t hesitate to protect your financial interests – schedule a consultation with Wright Street Lawyers now.