In Australia pre-nuptial agreements are referred to as Binding Financial Agreements (BFA), and apply not only to marriages but also domestic partnerships (de facto relationships). While they can be made before entering into a relationship or marriage, they can also be made during or after the fact.
A BFA is a legally binding financial agreement between two people that is a useful way to protect the assets of one or both parties. It details what assets and liabilities each person brings into the relationship and stipulates what would happen in the event that the relationship breaks down. It can also exclude particular assets from the collective property pool.
Assets that are commonly protected under a BFA include:
- Real estate
- Family business
- Trusts
- Cash
- Superannuation
- investments
- An entitlement to an inheritance
- Pension entitlement.
It might be appropriate for you to enter into a BFA if one of the parties has significantly more assets than the other, or is likely to come into a large inheritance. Children from former relationships can also be an important factor if they need to be financially protected. It can also assist in avoiding Court in the event the relationship breaks down as it can detail the terms of property division up front.
It is very important that a pre-nuptial agreement/Binding Financial Agreement is drafted correctly, so if you are considering one make an appointment to see Linna today.
Recent Comments