Many people have heard prenups talked about on American legal television shows. Binding Financial Agreements (which many know as prenups) are commonly used in family law matters in Australia to deal with a number of situation. People choose to use Binding Financial Agreements if:
• They are planning to enter a de facto relationship or to get married;
• They are already in a de facto relationship or are already married; or
• They have separated and their de facto relationship or their marriage has broken down/ended.
In each of the above situations, many choose to have their lawyer draft a Binding Financial Agreement to state how their property will be divided in the event that they separate from their de facto partner or spouse, or if they have already separated, to state how they will divide the property with their estranged de facto partner or spouse.
There are several key things to note about Binding Financial Agreements. Both parties must have an independent lawyer to provide them with legal advice about the terms and effect of the Binding Financial Agreement. Further, they both need their own lawyers to sign a Statement of Independent Legal Advice which must be attached to the original Binding Financial Agreement.
For legal advice tailored to your circumstances, such as whether a Binding Financial Agreement is suitable for you, please call our team to speak to a competent family lawyer with expertise in this area.