Binding Financial Agreement Form

Financial Agreements
A Financial Agreement (sometimes referred to as a pre-nup, Binding Financial Agreement or BFA) is a formal agreement that couples can make about the financial arrangements should their de facto relationship break down.
A Financial Agreement between you and your partner could cover how your assets and liabilities would be divided in the event of a breakdown of your relationship, as well as financial support, and any incidental issues.

Financial Agreements
A Financial Agreement (sometimes referred to as a pre-nup, Binding Financial Agreement or BFA) is a formal agreement that couples can make about the financial arrangements should their marriage break down.
A Financial Agreement between you and your partner could cover how your assets and liabilities would be divided in the event of a breakdown of your marriage, as well as financial support, and any incidental issues.

As you and your partner have been together for less than two years, you may not yet be considered to be in a 'de facto' relationship for the purpose of the relevant laws. However, making that determination can be quite complex and your lawyer will be able to provide you with specific advice when you meet.
Once you have been together for 2 years, or if you have a child together, you may each have the right to apply to the Court for a property settlement if you separate.
That can lead to costly, drawn out legal disputes and ultimately a judge may make a decision about your assets that you do not agree with.
A Financial Agreement allows you to 'opt out' of the Court process. Any division of assets will be governed by the Agreement rather than the Court.
You and your partner are certainly able to make a Financial Agreement in contemplation of entering into a 'de facto' relationship, or once you are in one. It is important that you seek specialist legal advice as early as possible to ensure that you make the right kind of agreement for your circumstances.

Usually, couples need to be together for 2 years before they are considered to be in a 'de facto relationship' for the purpose of the relevant law. However, because you and your partner [have| care for] a child together, you may each have the right to apply to the Court for a property settlement if you were to separate.
That can lead to costly, drawn out legal disputes and ultimately a judge may make a decision about your assets that you do not agree with.
A Financial Agreement allows you to 'opt out' of the Court process. Any division of assets will be governed by the Agreement rather than the Court.
You and your partner are certainly able to make a Financial Agreement now, and it is important that you seek specialist legal advice to ensure that you make the right kind of agreement for your circumstances.

As you and your partner are in a de facto relationship, you may each have the right to apply to the Court for a property settlement if you were to separate.
That can lead to costly, drawn out legal disputes and ultimately a judge may make a decision about your assets that you do not agree with.
A Financial Agreement allows you to 'opt out' of the Court process. Any division of assets will be governed by the Agreement rather than the Court.
You and your partner are certainly able to make a Financial Agreement now, and there is no need to wait until you are contemplating marriage or have already mixed your assets.

You and your partner would each have the right to apply to the Court for a property settlement if you were to separate after the marriage, and you may already have the right to do so.
That can lead to costly, drawn out legal disputes and ultimately a judge may make a decision about your assets that you do not agree with.
A Financial Agreement allows you to 'opt out' of the Court process. Any division of assets will be governed by the Agreement rather than the Court.
The earlier you speak with Bowen Buchbinder Vilensky before you marry the better. Courts have overturned Financial Agreements that are made just prior to a wedding because of a perception that there has been pressure on one of the parties to sign.
A Financial Agreement made before marriage will only come into effect when you actually marry, so Bowen Buchbinder Vilensky will provide you with careful and holistic advice to ensure your interests are protected.
It is important that you seek specialist legal advice as early as possible to avoid any perception of applying pressure, and to protect your position.

As you and your partner are married, you would each have the right to apply to the Court for a property settlement if you were to separate.
That can lead to costly, drawn out legal disputes and ultimately a judge may make a decision about your assets that you do not agree with.
A Financial Agreement allows you to 'opt out' of the Court process. Any division of assets will be governed by the Agreement rather than the Court.
You and your partner are certainly able to make a Financial Agreement now, and even though people sometimes talk about 'pre-nups' or 'prenuptial agreements', you are actually able to make a Financial Agreement at any time during your marriage.

Requirements of Financial Agreements
For Financial Agreements to be binding and effective, parties need to follow the strict and complex requirements of the Family Law Act.
The law is strict in this respect, because you will effectively take away the power of the Court to make a decision that it thinks is fair. Therefore, it is seen as important to be absolutely certain that each party is properly advised and informed, and that they understand the effect of the Agreement they are entering into.
Bowen Buchbinder Vilensky will handle the process step by step, so there is no need for you to worry. You should however be aware of the following requirements:

1. Each party needs to receive their own independent legal advice before signing their Agreement. That means that your lawyer will not be able to act for your partner. Bowen Buchbinder Vilensky will be happy to refer them to a separate firm which also specialises in Financial Agreements;
2. Your lawyer needs to sign a certificate on the agreement that they have advised you about the effect of the agreement on your rights and the advantages and disadvantages of entering into it;
3. Each party must provide the other with full and frank financial disclosure of their assets and liabilities. Whilst this may seem a bit confronting, it is required, and we can assist you with that process.

The advantages of making a Financial Agreement

You and your partner wish to combine your assets and live a joint financial life. A Financial Agreement can ensure that you both share your assets equally if you separate, which may not be the result a Court would reach. That can make for a very simple, straightforward 'clean break' that would leave you on an equal footing.

As you and your partner are acquiring property or assets together, a Financial Agreement can help to clarify your respective roles, and help you plan for all possible outcomes.
A Financial Agreement can help you record the contributions each of you will make to your joint property, and set out how you'll deal with those joint assets if you separate. It can also deal with any other assets that you may wish to keep separate or which you may wish to share.

Financial Agreements are one of the best options to provide parties to a relationship with certainty that they will both be financially secure, regardless of what happens in the future.

You have indicated that you wish to keep your assets entirely separate from those of your partner. A Financial Agreement can help you to clarify that understanding, and also help you think through the practicalities.
If you were to separate in the future, your agreement can provide for a situation where you would be able to essentially 'walk away' from a financial perspective.

The main advantage of making a Financial Agreement is that it allows you to control what happens to your assets in the event of a separation.
You and your partner essentially wish to retain the assets you had at the start of the relationship and divide the rest between you if you separate. Courts can go through quite a different process when making a decision and may well arrive at a very different result. Entering into a Financial Agreement is your best option to enable you achieve the outcome that you believe is fair, and to avoid the uncertainty of going through the Courts if you separate.

A Financial Agreement can stipulate that unless and until you have children together, your assets will be kept separate. You can choose whether or not to provide for what happens when children do come along, or simply have an agreement that will cease to be effective when you have children, so that you can make those decisions later.

Inheritances, gifts, and other transfers of money or property can be quarantined with a Financial Agreement, so that they will not form part of the combined pool of assets available for division if you were to separate.
Many people consider it to be fair that the person who receives an inheritance will retain the benefit, but the law does not always reflect that. A Financial Agreement can be the best way to ensure that inheritances are treated in a way that you consider to be fair.

Financial independence is important in many modern relationships, and having a clear agreement about how your income will be saved, invested, or applied to your living costs can help you to achieve that. Your Financial Agreement can give you and your partner the ability to make your own financial decisions, without the concern that you may be disadvantaged if the relationship were to end.

For couples who enter a relationship with an unequal degree of wealth, it is often a good idea to keep clear records and have a sensible agreement about each person's expectations in the event of a separation.

It is important for many people to preserve family wealth or contributions that have been made by one party's family. In many circumstances, the outcome that a Court might reach when deciding on a division of property is quite different to what either of the parties intended when entering the relationship, or formed during the relationship.
A Financial Agreement will help you achieve an outcome that both of you consider to be fair.

Financial Agreements are one of the best ways to give you control over your financial future. You can create an agreement that takes into account your specific circumstances, and achieves an outcome that you consider fair and appropriate.

Some of the other advantages are:

1. There is no Court involvement in preparing a Financial Agreement;
2. Sentimental assets and assets of monetary value can be quarantined from the pool to be divided;
3. Stamp duty concessions and other tax advantages can apply to the agreement; and
4. You can minimise the cost, delay and uncertainty that can arise if your relationship ends and a settlement must be determined by the Court.

Will the Agreement be Binding?
It takes a great degree of care, skill and expertise to draft a Financial Agreement that complies with all of the legal requirements and is resistant to challenge.
A Financial Agreement may fail simply because it was not valid in the first place. Some agreements, drawn up by solicitors who were not expert family lawyers, have been overturned on technicalities of the drafting and signing process, or where a party has not obtained adequate legal advice.
Courts have also overturned agreements because:

• A party has committed fraud in the Court's eyes;
• There has been failure by a party to fully and properly disclose their assets;
• There has been undue pressure on a party to sign the agreement;
• Circumstances that have arisen since making the agreement have made it impractical to carry out the agreement; or
• Since making the Agreement, circumstances have arisen which would mean that a child or partner would suffer hardship if the Agreement is carried out.

You have come to the right place, as Bowen Buchbinder Vilensky has a great deal of expertise with preparing Financial Agreements. Your lawyer will apply that expertise to create the greatest degree of certainty possible for you.

How we can help you
Before you sign a Financial Agreement, it is vital that you receive expert legal advice from lawyers who are dedicated to ensuring that your interests are protected.
Your lawyer will thoroughly review the agreement that your partner proposes and meet with you so that they understand your views and your position.
Your lawyer will advise you by comparing the effect of the Agreement being proposed to what would happen if you separated and a Court decided the outcome. They can also advise you on other options that could achieve the goals that you and your partner wish to achieve, so that you can make a fully informed decision about whether to enter the agreement.

1. Complete Our Online Induction
   In the next section of our online induction, we will spend about 20 minutes going through some of the background information that your lawyer will need in order to advise you on your options.
   By using this system, you can provide key details in your own time and space. That is very useful, as it will allow your lawyer to prepare for their conference with you. This means that you will spend your first conference discussing your options and the approach you wish to take, rather than relaying basic information.
2. Receive Expert Legal Advice in Conference
   Your lawyer will meet with you in person to ensure that they fully understand your position and what you would like to achieve. They will answer any questions and formulate an approach that you wish to take. If you use our online induction, then you will be in a position to fully understand your options by the end of your first conference.
3. Negotiate and Finalise the Agreement (Optional)
   If you decide that you would like to proceed with a Financial Agreement, Bowen Buchbinder Velinsky will draft the necessary documents, and work with you to ensure that the agreement achieves your goals.
4. Agree and Execute
   Your partner will need to receive independent legal advice, and Bowen Buchbinder Velinsky will work with their lawyers to finalise the terms of the Agreement.

Once everyone is happy to proceed, Bowen Buchbinder Vilensky will provide you with a formal letter of advice about the agreement. As required by legislation, that letter will advise you about the effect of the agreement on your rights, and the advantages and disadvantages of making the agreement.
Once you have had time to consider that advice, you then choose to sign the agreement, and Bowen Buchbinder Vilensky will execute the other documents required to make the agreement valid and binding.

1. Complete Our Intelligent Online Induction
   In the next section of our online induction, we will go through some of the background information that your lawyers need in order to advise you on your options.
   As you and your partner have already decided on the agreement that you would like to make, it is important that we understand all of the relevant aspects of your situation. That enables us to provide you with advice and be sure that the agreement achieves your goals.
   By using this system, you can provide us with your key details in your own time and space. That is very useful, as it will allow your lawyer to prepare for their conference with you. This means that you will spend your first conference discussing your options and the approach you wish to take, rather than relaying basic information.
2. Conference with Your Lawyer
   Your lawyers will meet with you in person to discuss the agreement you have reached, and how it will be formalised into a Financial Agreement. You can also raise any questions that you have and receive advice regarding your plans.
3. Negotiate and Finalise the Agreement (Optional)
   Your lawyers will draft the legal documents necessary to give effect to the agreement you have reached with your partner and provide you with drafts to ensure that the final Financial Agreement achieves your goals.
4. Agree and Execute
   Your partner will need to receive independent legal advice, and Bowen Buchbinder Vilensky will work with their lawyers to finalise the terms of the Agreement.

Once everyone is happy to proceed, Bowen Buchbinder Vilensky will provide you with a formal letter of advice about the Agreement. As required by legislation, we will advise you about the effect of the Agreement on your rights, and the advantages and disadvantages of making the Agreement.
You then sign the Agreement, and Bowen Buchbinder Vilensky execute the other documents required to make the Agreement valid and binding. If other steps are needed to give effect to the terms of the Agreement your lawyers can assist you with this.

1. Complete Our Intelligent Online Induction
   In the next section of our online induction, we will go through some of the background information that your lawyers need in order to advise you on your options.
   If your partner has already provided you with a draft version of the Agreement, we will ask you to email a copy to us so that we can review it before our conference.
   By using this system, you can provide us with your key details in your own time and space. That is very useful, as it will allow your lawyers to prepare for their conference with you. This means that you will spend your first conference discussing your options and the approach you wish to take, rather than relaying basic information.
2. Conference with Your Lawyer
   Your lawyer will meet with you in person to discuss the proposed agreement. They will ensure that you understand the nature of the Agreement and the effect that it would have. You can have a private, confidential discussion about whether it is in your interests to sign the Agreement, and if necessary, discuss your other options.
3. Negotiate and Finalise the Agreement (Optional)
   If you instruct your lawyer to do so, they can negotiate with your partner’s lawyers to ensure that the terms of the agreement are appropriate, and that your interests are protected. Bowen Buchbinder Vilensky works with sensitivity to ensure that relationships are protected, without compromising your legal position.
4. Agree and Execute (Optional)
   If and when you are happy to proceed with the agreement, your lawyers will provide you with a formal letter of advice. As required by legislation, the letter will advise you about the effect of the agreement on your rights, and the advantages and disadvantages of making the agreement.

You would then sign the agreement, and your lawyers would execute the other documents required to make the Agreement valid and binding. If other steps are needed to give effect to the terms of the Agreement your lawyers can assist you with this.

If you would like to set up a time for a conference now, please click here. Otherwise, let’s keep going so that we can help you make the most of your lawyer’s expertise.