Not worth the piece of paper they’re written on OR worth their weight in gold?
The truth lies somewhere in between.
Preparing a Binding Financial Agreement during a relationship is the only thing you can do as a couple to control how division of your joint and personal assets and liabilities might be dealt with in the future should you separate. A valid Binding Financial Agreement essentially contracts you out of the scope of the Family Law Act 1975 (“the Act”), so that at separation the Act would not apply. Your assets and liabilities would be divided according to the agreement you and your partner reached earlier, as documented in your valid Binding Financial Agreement.
The trouble is that it is often in one person’s interest for the parties to sign a Binding Financial Agreement, but perhaps not in both parties’ interests. Contracting out of the Family law regime may in fact be unfair to one party, especially if that person after separation is the primary carer of children or has health issues that prevent them from secure employment. It all comes down to an assessment of the relationship, the parties, the asset pool and the agreement reached. There are also technicalities that must be observed in order for a Binding Financial Agreement to be valid, including that the parties have each had individual independent legal advice as to the effect of the agreement. Solicitors need to sign the agreement to evidence that such advice has been given.
All of the above obviously comes at a cost.
A Binding Financial Agreement might be a fantastic investment in your future, or it could be a complete waste of your time and money. Every situation is different.
If you’re unsure whether a Binding Financial Agreement is right for your situation, we’d be happy to talk it through. Call the office on 03 9548 5500 to make an appointment with one of our friendly family law solicitors.
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