Binding Financial Agreements Bendigo | O’Haire Legal
Clear financial arrangements before, during or after a relationship
Protecting property, businesses, inheritances and family wealth
A financial agreement allows married or de facto couples to decide how some or all of their property and financial resources will be dealt with if their relationship ends.
Financial agreements can be made before, during or after a marriage or de facto relationship. When properly prepared and binding, an agreement can remove the Court’s power to determine the financial matters covered by it.
O’Haire Legal prepares and advises on financial agreements for clients in Bendigo and throughout regional Victoria, including agreements involving real estate, businesses, trusts, farming assets, superannuation, inheritances and family contributions.
Fixed Fees | No Office Visit Required
What is a binding financial agreement?
A financial agreement is a private contract made under the Family Law Act 1975. It is commonly called a binding financial agreement or BFA.
A financial agreement can determine how some or all of the parties’ property and financial resources will be dealt with if their relationship ends. It can also address responsibility for liabilities and, in appropriate circumstances, spousal or de facto maintenance.
When properly prepared and binding, a financial agreement can prevent the Court from making different property or maintenance orders about the matters covered by the agreement.
Unlike consent orders, the terms of a financial agreement are not approved by the Court when the agreement is made. Strict legal requirements must therefore be satisfied, including independent legal advice for each party.
When can a financial agreement be made?
A financial agreement can be entered into at different stages of a relationship.
Before marriage
An agreement made before marriage is often called a prenuptial agreement or prenup. It can record the property each person brings into the marriage and establish what will happen financially if the marriage ends.
These agreements are made under section 90B of the Family Law Act.
During marriage
Married couples can enter into a financial agreement at any time during their marriage. This may be appropriate following an inheritance, the acquisition of a business, a substantial family contribution or a significant change in the parties’ financial circumstances.
These agreements are made under section 90C of the Family Law Act.
After divorce
Former spouses can use a financial agreement to formalise their financial arrangements after divorce. These agreements are made under section 90D of the Family Law Act.
Before a de facto relationship
A couple can enter into an agreement in contemplation of commencing a de facto relationship. These agreements are made under section 90UB of the Family Law Act.
During a de facto relationship
De facto partners can make an agreement while they are living together. These agreements are made under section 90UC of the Family Law Act.
After a de facto relationship ends
Former de facto partners can use a financial agreement to record their agreed financial settlement after separation. These agreements are made under section 90UD of the Family Law Act.
When should you consider a financial agreement?
A financial agreement may be worth considering where:
one person enters the relationship with substantially more property;
either party owns a house or investment property;
one or both parties have children from an earlier relationship;
a party owns or operates a business;
farming land or other intergenerational property is involved;
property is held through companies, partnerships or trusts;
one party expects to receive an inheritance;
parents or other relatives have contributed money;
either party has substantial debts or financial risks;
one party wants to preserve particular property for their children;
the parties want certainty about their future financial arrangements;
the parties are reconciling after separation;
the parties have separated and reached a financial settlement; or
an existing financial agreement needs to be reviewed or replaced.
Financial agreements are not limited to wealthy couples. An agreement may also provide certainty about an ordinary home, mortgage, superannuation, family loan or responsibility for debts.
Our financial agreement process
1. Initial consultation
We discuss your relationship, financial circumstances, objectives and the terms you want the agreement to contain.
2. Financial information
We identify the relevant assets, liabilities, financial resources and ownership structures. We also determine whether valuations or specialist taxation advice are required.
3. Advice on available options
We advise whether a financial agreement is suitable or whether another arrangement, such as consent orders, would better achieve your objectives.
4. Drafting or reviewing the agreement
If we act for the person proposing the agreement, we prepare a draft tailored to the parties’ circumstances.
If another lawyer has prepared the agreement, we review its operation and advise you about its effect, advantages, disadvantages and potential risks.
5. Negotiation
Proposed amendments are considered and negotiated through the parties’ respective lawyers.
6. Independent advice and signing
Each party receives independent advice before signing. The agreement and the required legal-advice statements are then executed.
7. Implementation
We assist with any immediate steps required under the agreement, which may include property transfers or related documents.
Speak to a financial agreement lawyer
A financial agreement should be prepared carefully and without unnecessary time pressure.
Early advice provides time to identify the relevant property, obtain financial information, consider taxation and superannuation issues, negotiate appropriate terms and ensure each party receives independent legal advice.
O’Haire Legal assists clients in Bendigo and throughout regional Victoria with financial agreements before marriage or cohabitation, during relationships and after separation.