The parties may also try to reduce conflicts and avoid costly litigation and litigation if the relationship fails. It is not uncommon for a relationship to fail because the parties do not agree on finance or financial management. As a result, these issues and the resolution of their management can avoid future differences of opinion. However, for a BFA to be binding and enforceable and therefore rewarding, the requirements of the Family Law must be strictly respected. Often, parties seek advice on a DIY binding financial agreement, downloaded for a tax and concluded by the parties. These agreements are fraught with dangers and often do not be worth the costs incurred by the parties to download them. Binding financial agreements (BFA) are written agreements that define how your assets will be split in the event of separation. It encompasses both de facto and marriage relationships. They are often called marital agreements. A binding financial agreement may also allow the financially wealthiest partner to have no relationship with the other party for materialistic reasons.
In addition, basic rules can be established as to who will pay for what bills, how the property will be split and where the income will go. If one of the parties has already entered into a separation or divorce, a binding financial agreement can also be reassuring. You should seek legal advice before deciding what to do. A lawyer can help you understand your legal rights and obligations and explain how the law applies to your case. A lawyer can also help you reach an agreement with the other party without going to court. Treat a binding financial agreement (BFA) as a contract. As you would if you entered into a contract, this should not be taken lightly. As the name suggests, the BFAs are legally binding and a party cannot simply change its mind and leave. First, it would serve as a safety net, whether or not it is used at the end. Second, it can allow a couple to decide in advance what they might quantify as an equitable allocation of financial assets, resources and commitments. It may also mean that the definition of provisions, while the relationship is happy if a binding financial agreement is reached before separation, means that the agreement probably reflects what both parties would accept is reasonable. However, there are some general pros and cons that apply in all areas and which should be taken into consideration by parties considering a BFA: I too often hear these statements and questions as not when I discuss with clients the potential of concluding a binding “pre-marriage” financial agreement.
Marino Law is available to provide effective, cost-effective and informed representation in negotiating the terms of a BFA, to create a BFA and advise you. Our expertise focuses on the critical assessment of your existing BFA and the possibility of requesting the cancellation of the agreement taking into account the circumstances that existed at the time of the contract, or your current and modified circumstances.