Pre-nuptial / Binding Financial Agreements
When compared with the cost of litigation the cost of a financial agreement is minimal or insignificant
Pre-Nuptial / Binding Financial Agreements (BFA) are relatively new in Australia. Parties can enter into BFA’s before a relationship commences, during their relationship, or after marriage. Drafting a BFA is a very complex task. It is not a simple one as a lot of people think. A BFA that deals with all of the property of the parties that they currently have or may have in the future requires significant care to be brought to the exercise including what structures parties may buy property in the future, what their plans are to existing property, effect of relocation or illness on the Agreement and a myriad of other matters. There is no crystal ball that can be used at the time of preparing a Financial Agreement.
Because of their complex and uncertain nature, Financial Agreements are expensive but when compared with the cost of litigation if parties separate, the cost is minimal or insignificant.
Parties can also enter into Mini-BFA’s where certain assets are protected from a claim in the event of separation, thus leaving all other property accumulated the subject of negotiation and agreement or for the court to determine. Mini-BFA’s could include protection of an inheritance, a business or some sentimental but expensive items of property such as antiques, art works and the like.