Binding Financial Agreement Risks
For a financial agreement to be legally binding, it must be signed by both parties and each of them must have received from a lawyer, before signing, independent legal advice on the effect of the agreement and its advantages and disadvantages for the party on that date. In addition, the agreement should be accompanied by a certificate signed by lawyers offering independent legal advice attesting that that party has received independent legal assistance. If you are looking at the pros and cons of the binding financial agreement, you should consider the attorney`s fees when designing the agreement and the requirement for both parties to obtain separate independent legal advice. If a financial agreement meets the strict requirements of the Family Law Act 1975 and the agreement is duly drafted by an experienced family lawyer, it offers many advantages. First, it would serve as a safety net, whether it is fine by use or not. Second, it can allow a couple to decide in advance what they would quantify as an equitable allocation of financial assets, resources and liabilities. It may also mean that the definition of provisions, while the relationship is happy together if it is concluded by a binding financial agreement before separation, means that the agreement probably reflects what both parties would agree to. While there is no denying that there are risks involved in entering into a financial agreement, the risks normally identified are not limited to financial arrangements. The usual arguments against financial agreements are that they can be set aside because, if these risks are compared to the risks associated with the repeal of an agreement, because it is considered non-binding on the parties, it is clear that no process dealing with relational or conjugal issues is without risk.
Financial agreements are a better risk management tool because they allow the parties to have more control over their future financial relationships. There may be some risks if you enter a BFA. This may mean that it is sometimes difficult to address the issue of entering into such an agreement with your partner. Your partner may not see any benefit to themselves. Secondly, BFA`s third parties do not allow the agreement to be concluded. The actual agreement may also be unfair to a party if all possible scenarios are not taken into account. The court will not cancel a BFA simply because it is unfair to a party. The Family Law Act 1975 (Cth) (Family Law Act) provides that parties to a marriage or common-law relationship may enter into a binding legal agreement on financial arrangements in the event of the breakdown of their marriage or common-law relationship. . . .