BINDING FINANCIAL AGREEMENT DEFACTO

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What is included

Defacto 90UC

 

A Binding Financial Agreement Defacto  (sometimes known as a “pr=e-nup”) is a private agreement that couples are able to enter into to deal with financial and property matters.

The Family Law Act 1975 provides for parties to a marriage or defacto relationship to enter into a binding legal agreement about the financial arrangements should their marriage or defacto relationship break down. … You can make a financial agreement before, during or after a marriage or defacto relationship. the event of a relationship breakdown.

Table of contents

  1. Separate property.
  2. Joint property.
  3. During the defacto relationship.
  4. Separation.
  5. Division of property in the event of breakdown of the defacto relationship.
  6. Independent legal advice.
  7. Taxes.
  8. Claims for provision out of the estate of a deceased party.
  9. Notices.
  10. Governing law and jurisdiction.
  11. Further assurance.

Execution page.

ANNEXURE A..

ANNEXURE B..

ANNEXURE C..

A Binding Financial Agreement-defacto is for parties who are already in a defacto relationship.

14 pages long and includes gst.

 

 

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Preview Sample

BFA DEFACTO RELATIONSHIP
What is it?

A Binding Financial Agreement (BFA) in the context of a de facto relationship is a legal document that outlines the financial arrangements between two people who are or were in a de facto relationship. A de facto relationship is one where two people live together on a genuine domestic basis, but are not legally married to each other. BFAs can be made before, during, or after a de facto relationship and are governed by the Family Law Act 1975 in Australia.

Key Elements

Key Features of a Binding Financial Agreement for a De Facto Relationship

  1. Legal Framework:

    • Governed by the Family Law Act 1975.
    • Must comply with specific legal requirements to be binding and enforceable.
  2. Types of BFAs:

    • Pre-relationship: Also known as a prenuptial agreement, made before the relationship begins.
    • During relationship: Outlines financial arrangements while the relationship is ongoing.
    • Post-relationship: Made after the relationship has ended to settle financial matters.
  3. Content of the Agreement:

    • Division of Assets and Liabilities: Specifies how property, assets, and liabilities will be divided if the relationship ends.
    • Spousal Maintenance: Addresses any spousal maintenance arrangements, including whether one party will provide financial support to the other and under what conditions.
    • Financial Resources: Details any other financial resources or entitlements, such as superannuation, and how they will be treated.
    • Debt Responsibility: Clarifies how debts incurred before or during the relationship will be handled.
  4. Legal Advice:

    • Both parties must receive independent legal advice before signing the agreement.
    • Ensures each party understands the implications of the agreement and that their consent is informed and voluntary.
  5. Certification:

    • The agreement must include a statement from each party’s lawyer confirming that they have provided independent legal advice regarding the advantages and disadvantages of the agreement.
  6. Formal Requirements:

    • Must be in writing and signed by both parties.
    • Should comply with any other formal requirements outlined in the Family Law Act.

Benefits of a Binding Financial Agreement

  1. Certainty and Clarity:

    • Provides clear guidelines for the division of assets and financial arrangements, reducing uncertainty and potential disputes.
  2. Protection of Assets:

    • Allows individuals to protect their assets, including those acquired before the relationship.
  3. Flexibility:

    • Can be tailored to suit the specific needs and circumstances of the couple.
  4. Reduction of Stress and Conflict:

    • Helps minimize conflict and stress if the relationship ends, as financial matters are already agreed upon.

Potential Issues and Considerations

  1. Changing Circumstances:

    • The agreement may need to be reviewed and updated if there are significant changes in circumstances, such as the birth of children or substantial changes in financial status.
  2. Fairness and Enforceability:

    • Courts can set aside a BFA if it is deemed unfair, fraudulent, or if it was signed under duress. Therefore, it is crucial that the agreement is fair and equitable.
  3. Independent Legal Advice:

    • Both parties must have independent legal advice for the agreement to be enforceable, which can add to the initial cost of creating the agreement.

Steps to Create a Binding Financial Agreement

  1. Discuss and Negotiate Terms:

    • The couple discusses and negotiates the terms of the agreement.
  2. Draft the Agreement:

    • A lawyer drafts the BFA, ensuring it meets legal requirements.
  3. Independent Legal Advice:

    • Each party seeks independent legal advice to understand the implications of the agreement.
  4. Sign and Certify:

    • Both parties sign the agreement, and their lawyers provide certification of the independent legal advice.
  5. Review and Update:

    • The agreement should be reviewed periodically and updated as necessary to reflect any changes in circumstances.

Creating a Binding Financial Agreement in a de facto relationship can provide significant benefits by establishing clear financial arrangements and protecting the interests of both parties.

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