Importance of Asset Protection – Family Law

In our current society, de facto relationships and blended families are very common. It is normal that you may have concerns about how you can protect your assets and inheritance if the relationship breaks down.

Financial Agreements in Family Law
In Australia, family law financial agreements such as prenuptial agreements are known as Binding Financial Agreement (BFA). Whist the term pre-nuptial agreement may have always had a nasty reputation, it can be an effective way to protect your financial position and avoid the possible bitter break up.

BFA is a written agreement between two persons in a relationship which sets out how they propose to deal with financial matters in the event of a separation. It provides how the parties propose to operate in respect of financial matters, as well as how specific assets are to be divided.

How are Financial Agreements Binding?
It is important to understand that a BFA is only binding on the parties of the agreement if the following requirements are satisfied:

• The agreement is in writing and signed by both parties;
• The parties are contemplating entering a marriage or de facto relationship, are in a de facto relationship or marriage, have separated or divorced;
• It includes a statement from each party to the agreement, before the agreement was signed that the party obtained independent legal advice on their rights and the advantages and disadvantages at the time that the advice was provided to the party of making the agreement;
• Either before or after signing the agreement, each party was provided with a signed statement by a legal practitioner certifying that the advice with respect to the parties rights and advantages and disadvantages in entering the financial agreement was given;
• The agreement has not been terminated and has not been set aside by a court; and
• Includes a separation declaration unless the agreement is signed post-divorce.

If you are living with your partner or intending to live with your partner and you wish to protect yourself against a possible claim against your assets in the event of separation at some time in the future, then you may wish to consider a BFA.

If you are going through a separation and want to sort out your finances and parenting arrangement, Straits Lawyers are now offering online services in both English and Chinese.

Simply purchase our online services via this link: https://straits-lawyers.square.site/product/binding-financial-agreement-consultation-bfa-/5?cs=true
Alternatively, you can email us at info@straitslawyers.com or call at 08 8410 9069 to find out more.

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Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.