Pre-Nups! You hear about them in the movies and in magazines but what are they really?
A ‘Pre-Nuptial Agreement’ is a document which allows a couple to plan their future rights and responsibilities. Under the Family Law Act 1975 it is actually called a Binding Financial Agreement or ‘BFA’. These BFAs are entered into and signed by both parties, having had legal advice upon their advantages and disadvantages. They can be entered into at the outset, during or after a relationship has ended. The document must address a number of criteria set out in the Family Law Act 1975 if it is to be binding and have effect.
The major areas that are addressed in a BFA are:
- How property and financial resources are separated (or retained) upon final separation,
- Maintenance or either party.
So do you need one?
There is a good saying; if you fail to plan, you plan to fail. By creating a Binding Financial Agreement, you may save yourself huge litigation costs and significant emotional turmoil if your relationship comes to an end. To ensure your financial agreement is ‘binding’, it needs to comply with the strict terms of the Family Law Act 1975.
If you feel you might need a Binding Financial Agreement or have another family law issue, feel free to contact me at Rob@test2.gpla.com.au
Rob Hollis