Does a binding financial agreement need to go to court?

No, a Binding Financial Agreement does not need to go to court. The primary purpose of these agreements is to allow couples to amicably settle their financial affairs without court intervention. However, should a dispute arise or if the agreement is challenged, court involvement may become necessary. At Stanford Legal, we strive to create agreements that stand firm, aiming to prevent future litigation and promote amicable resolutions.

How do I complete a binding financial agreement?

Securing a Binding Financial Agreement requires a structured legal process, which begins with comprehensive discussions about your financial circumstances and objectives. Both parties must then seek independent legal advice to ensure the agreement's terms are understood and fair. The team at Stanford Legal will guide you through each step, from drafting the agreement to ensure it's legally binding, ensuring you're fully informed and protected throughout the process.

Binding Financial Agreement Lawyers Ipswich

What a binding financial agreement is

A contract under the Family Law Act, for married and de facto couples, at any stage.

A binding financial agreement, or BFA, records how your property, financial resources and any spousal maintenance will be dealt with if the relationship ends, or how they'll be divided now that it has.

Made before marriage it's commonly called a prenup. Made after separation it's an alternative to consent orders for finalising a property settlement. Unlike consent orders, a BFA isn't reviewed or approved by a court, which is both its strength and its risk: it's private and flexible, but it stands or falls entirely on whether it was done properly.

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What makes it binding

Writing, signatures, disclosure, and independent advice for each of you.

To be binding, the agreement must be in writing and signed by both parties. Before signing, each of you must receive independent legal advice from your own lawyer about the effect of the agreement on your rights and its advantages and disadvantages, and each lawyer must sign a statement confirming the advice was given.

Both of you must disclose your financial circumstances fully. A court can set a BFA aside for fraud or non-disclosure, unconscionable conduct, if it was signed to defeat a creditor, if it's become impracticable to carry out, or if a material change in circumstances relating to a child would cause hardship. We draft with each of those grounds in view.

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BFA or consent orders

Both make a settlement final. They suit different situations.

Consent orders are made by the court and carry its authority, which makes them harder to challenge and simpler to enforce. A BFA is private, needs no court involvement, and can deal with matters before a relationship ends, which consent orders can't. A BFA also depends on both people getting proper independent advice, which adds cost.

Our general view is that consent orders suit most post-separation settlements, and a BFA suits couples who want an arrangement in place while they're together, or who have reasons to keep the settlement out of court. We'll tell you which fits, and if you already have an agreement, we can review it or provide the independent advice the other side needs.

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Looking for a different family law service?

Family law rarely arrives one issue at a time. Property, parenting, agreements and protection often overlap, so the pages below cover the rest of what we do. If you're not sure where your situation fits, call 0483 980 001 and we'll point you the right way.

Divorce and separation

Property settlement

Parenting arrangements

Consent orders

Spousal maintenance

Domestic violence

Dispute resolution

Mediation and arbitration

Prenups

Superannuation splitting

International family law

Living arrangements

"I simply can’t thank and commend Richie, Steven, Renata and the whole team at Stanford Financial enough for making my mortgage refinance as smooth as humanly possible."

Dan

Stanford Financial Client

"We are so Blessed with our new Home. Thanks to Stanford Legal, Laura was a joy to communicate with anytime we needed to enquire. Quick, reliable and very Trustworthy."

Katrina Emberson

Stanford Legal Client

"We are beyond grateful for Richie and the team at Stanford! 🙌🏻 Through every hurdle and challenge, they went exceptionally far to help get our application through."

Khirsten Mamangun

Stanford Financial Client

"One thing I always love and look for when choosing people to guide me is how much time and presence they give. They treated us like we were the only client they had."

Dragica Radosavljevic

Stanford Legal Client

"All the team at Stanford were good to deal with. If you're a Veteran struggling to get a loan approved because you're on Incaps, or Super, speak to them."

Stewart S

Stanford Financial Client

"This is the second time we’ve used stanford financial, and once again the experience was outstanding."

Blake Whitehead

Stanford Financial Client

"Phenomenal service. Thank you to the Stanford Legal team for all your help & guidance."

Bryony Winsor

Stanford Legal Client

"I can’t recommend Stanford legal enough. All 3 property sales have been seamless, professional and efficient. The team are amazing and will look after you."

Christie Johnston

Stanford Legal Client

"The team at Stanford Financial are brilliant! I was referred to them by a friend and dealing with them has been a fantastic experience."

Andrew Bell

Stanford Financial Client

"I honestly can't thank the team enough at Stanford Financial, especially Richie and Mitch! They both went above and beyond to get my finance sorted, and they did it all within 24 hours!"

Jamie Harris

Stanfor Financial Client

QUESTIONS

Frequently asked questions

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Can a binding financial agreement be overturned?

Yes, on specific grounds. A court can set a BFA aside where there was fraud or non-disclosure, unconscionable conduct, where the agreement was made to defeat a creditor, where it's become impracticable to carry out, or where a material change in circumstances relating to a child of the relationship would cause hardship. An agreement made without the required independent legal advice may not be binding at all. Careful drafting and proper process are the protection.

Are binding financial agreements enforceable?

Yes, when they meet the Family Law Act's requirements: in writing, signed by both parties, full financial disclosure, and independent legal advice for each party with a signed statement from each lawyer. An agreement that meets those requirements is enforceable as a contract, and the court can make orders to give effect to it.

Does a binding financial agreement go to court?

No. That's the main difference from consent orders. A BFA is a private agreement that isn't filed with or approved by a court. Court involvement only arises if one party later seeks to enforce or set aside the agreement.

How do we complete a binding financial agreement?

We discuss your circumstances and what you want the agreement to do, then draft it. Each of you then receives independent legal advice from your own lawyer, who signs a statement of advice. Once both of you have signed, each of you keeps a copy with the statements attached. If we act for you, your partner will need their own lawyer for their advice, and we can suggest how to arrange that.

Can a BFA cover superannuation?

Yes. A BFA can include a superannuation agreement setting out how superannuation interests will be split. The fund is notified and implements the split once the agreement is in place. The same advice and disclosure requirements apply.

Binding financial agreement lawyers in Ipswich

What a binding financial agreement is

What makes it binding

BFA or consent orders

Looking for a different family law service?

Divorce and separation

Property settlement

Parenting arrangements

Consent orders

Spousal maintenance

Domestic violence

Dispute resolution

Mediation and arbitration

Prenups

Superannuation splitting

International family law

Living arrangements

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