A binding financial agreement (BFA) is a legal document that outlines how a couple will divide their assets in the event of a separation or divorce. These agreements can be made before, during, or after a marriage or de facto relationship.
A BFA can cover a wide range of financial matters, such as property division, spousal maintenance, superannuation, and debt. It is important to note that a BFA can only be entered into if both parties have received independent legal advice.
Once a BFA is signed, it is legally binding and enforceable. This means that if one party does not comply with the agreement, the other party can take legal action to enforce it.
A certificate must be signed by each party`s lawyer to confirm that independent legal advice has been given and that the agreement has been properly executed. This certificate is known as a binding financial agreement certificate.
The purpose of the binding financial agreement certificate is to ensure that both parties fully understand the terms of the agreement and are aware of the legal implications of signing it. It is also a safeguard against potential claims that one party did not fully understand the terms of the agreement or was pressured into signing it.
In addition to the binding financial agreement certificate, it is important for both parties to keep a copy of the agreement and the certificate in a safe place. These documents may need to be produced in the future if there is a dispute over the terms of the agreement.
Overall, a binding financial agreement can provide peace of mind for couples who want to protect their assets in the event of a separation or divorce. However, it is important to seek independent legal advice before signing a BFA and to ensure that the binding financial agreement certificate is properly executed.