Binding Financial Agreement

Binding Financial Agreement vs Consent Orders

When couples decide to divorce, they often use BFAs and Property Consent Orders to divide their finances in a legally binding manner. However, these instruments have significant differences, and one may be a better option depending on the situation. One key difference is that Consent Orders are only available after the relationship has ended, while Financial Agreements can be made anytime during or before the relationship. 

When deciding whether to use a BFA or Consent Order for your property settlement, it's important to consider your goals and priorities.

Generally speaking, a BFA is better if parties agree to an unequal financial division, value privacy, and wish to include spousal maintenance or address issues not typically covered by Consent Orders.

On the other hand, Consent Orders are generally ideal for those with straightforward finances who want a fair agreement while minimising legal fees. If you're considering either option, consider consulting with the Peter J Griffin Lawyers in Perth.

Binding Financial Agreement Advantages and Disadvantages

One advantage of a binding financial agreement is that it can be entered at any point in the relationship - before, during, or after marriage. This provides flexibility for couples who want to ensure their assets are protected in the event of a separation or divorce. Another advantage is the certainty it gives regarding property division. Emotions can run high during a divorce, making it difficult for couples to reach logical and fair compromises. With a binding financial agreement, both parties understand what assets they will retain and can avoid costly legal fees associated with court proceedings. Efficiency is also a benefit of a binding financial agreement. The court system in Australia can be slow, and reaching a hearing date can take months. A binding financial agreement allows couples to avoid unnecessary litigation and emotional turmoil. A binding financial agreement also provides protection and peace of mind. Couples can specify which assets are essential to them and what they wish to retain, ensuring their financial future is secure. In cases where couples have been married multiple times, the agreement can ensure assets go to their children. 

However, a disadvantage of a binding financial agreement is that it may be used to protect one party's interests more than the other. This can leave one party feeling unprotected and at risk of losing their partner. Another disadvantage is that the mere mention of a binding financial agreement can negatively impact a relationship. Some individuals may view it as a lack of faith in the relationship rather than a security measure.

How does it work?

The most crucial initial step is to reach a finalised agreement with your partner. What will be divided, and who will retain what? It's essential that both parties agree to the proposed separation without any coercion, fraud, or unethical behaviour.

Then, our expert family lawyers will draft a BFA, which outlines the specifics of your agreement and covers everything.

Once the draft is ready, we can review it, make changes, and negotiate for a better outcome for you. 

Both parties must sign the BFA, and independent legal advice is necessary for confirmation of this legal advice, which becomes part of the BFA.

Finally, the BFA becomes effective, and both parties are bound to follow whatever is outlined in the agreement. This process is typically the fastest way to achieve a legally binding agreement and avoids extensive court intervention.

Binding Settlement Agreement Lawyers in Perth

If you have any inquiries regarding your Binding Financial Agreements, the Peter Griffin is ready to assist you. Our Family Law team in Perth can guide you in making the appropriate decision moving forward.

Why Choose Us

We assist clients in - 

Perth, Applecross, Winthrop, Booragoon, South Perth, Como, Waterford, Brentwood, Ardross, Bicton, Fremantle, Myaree, Kardinya, Murdoch, Bunbury, Busselton, Eaton, Australind.