Binding Financial Agreements

At Drinkwater Criminal and Family Lawyers, we recognize that financial clarity is essential in any relationship. Serving clients in Forster, Taree, Newcastle and surrounding areas, our experienced legal team provides comprehensive assistance in drafting and reviewing Binding Financial Agreements (BFAs) to protect your financial interests during or after a relationship.

Understanding Binding Financial Agreements in New South Wales

A Binding Financial Agreement, commonly known as a BFA, is a legally enforceable document that outlines how assets, liabilities, and financial resources will be divided between parties in the event of a relationship breakdown. BFAs can be established before, during, or after a marriage or de facto relationship, offering flexibility in managing financial arrangements. ​

Key Features of Binding Financial Agreements:

  1. Asset and Liability Division: BFAs specify the distribution of assets and liabilities, including property, investments, superannuation, and debts, ensuring both parties have a clear understanding of their financial entitlements and obligations.​

  2. Spousal Maintenance: These agreements can include terms regarding spousal maintenance, detailing any financial support one party may provide to the other post-separation.​

  3. Financial Resource Management: BFAs can address the management and division of financial resources, safeguarding interests in businesses, inheritances, or family trusts.​

Legal Requirements for a Binding Financial Agreement

For a BFA to be legally binding in New South Wales, it must meet specific criteria as outlined in the Family Law Act 1975:​

  • Written Agreement: The BFA must be in writing and signed by all parties involved.​

  • Independent Legal Advice: Before signing, each party must receive independent legal advice from an Australian legal practitioner regarding:​

    • The effect of the agreement on their rights.​

    • The advantages and disadvantages of entering into the agreement.​

  • Legal Practitioner’s Statement: Each party must obtain a signed statement from their legal practitioner confirming that the required advice was provided.​

  • Exchange of Statements: A copy of the legal practitioner’s signed statement must be given to the other party or their legal representative.

Adhering to these requirements is crucial to ensure the BFA's enforceability. ​

Advantages of Binding Financial Agreements

  • Clarity and Certainty: BFAs provide a clear framework for financial arrangements, reducing the potential for disputes if the relationship ends.​

  • Protection of Assets: They safeguard individual assets acquired before or during the relationship, including family businesses, inheritances, and investments.

  • Efficiency: Having a BFA in place can streamline the separation process, minimizing stress and legal costs.

Considerations and Limitations

While BFAs offer numerous benefits, it's essential to be aware of their limitations:​

  • Court Intervention: In certain circumstances, a court can set aside a BFA, such as instances of fraud, non-disclosure of assets, or if the agreement is deemed impracticable or unconscionable.

  • Regular Review: It's advisable to review and, if necessary, update the BFA periodically to reflect significant changes in circumstances, such as the birth of children or substantial shifts in financial status.​

Our Legal Services

  • Drafting and Reviewing BFAs: We assist in preparing comprehensive BFAs tailored to your unique circumstances and review existing agreements to ensure they meet legal standards.​

  • Independent Legal Advice: Our team provides the mandatory independent legal advice required for BFAs, ensuring you fully understand the implications of the agreement.​

  • Negotiation Support: We facilitate negotiations between parties to reach mutually agreeable terms, promoting amicable resolutions.​

Why Choose Drinkwater Lawyers

  • Local Expertise: With a strong presence in Forster, Taree, Newcastle, and surrounding regions, we have an in-depth understanding of the local legal landscape.​

  • Client-Centric Approach: We prioritize your individual needs, offering personalized legal strategies and compassionate support throughout the process.​

  • Commitment to Excellence: Our team is dedicated to providing high-quality legal services, ensuring your financial interests are protected with professionalism and integrity.​

Contact Us

If you're considering a Binding Financial Agreement or need advice on financial arrangements during or after a relationship, it's essential to seek professional legal assistance. Contact Drinkwater Criminal and Family Lawyers today to schedule a confidential consultation. Let us help you achieve financial clarity and security tailored to your unique situation.

Contact Us

Family Law