A Binding Financial Arrangement can help Secure your Future
When you are married, your partner may have been dominant as far as finances were concerned. It’s a wise idea to seek legal guidance from reliable family lawyers in order to secure your financial future. The reality is that many women tend to quit their jobs or leave their careers on hold after marriage in order to look after the house and children and so on. In such cases, it is even more important to ensure that property, assets and finances are distributed in a fair and equitable manner after the marriage relationship has ended. The monies are invaluable especially during the period when you begin to explore career options and look for a suitable job. A legal financial arrangement will help you pay your rent or mortgage as well as look after your needs.
A ‘binding financial agreement’ is (also known as a ‘BFA’) a written contract between you and your partner that describes the distribution of assets and property. A binding financial agreement may include one or more of the details described below:
- Prenuptial agreement – A prenuptial agreement (also known as a PNA) is drawn between two partners who intend to get married in the near future. It may contain a variety of legal issues, rights and responsibilities described in the Australian Family Act of 1975. While it may not seem like a romantic thing to do before marriage, it can help promote understanding and communication in the event of a divorce. In fact, prenuptial agreements help pave the way for a quicker and more amicable settlement if you decide to separate from your partner.
- Postnuptial agreement: Like a prenuptial agreement, a postnuptial agreement is also a financial contract except that it is drawn up after marriage or a civil union. A postnuptial agreement will usually describe the division of property, assets, debt and monies in the event of divorce, death or separation and so on.
- Cohabitation agreement: This is a contract that describes distribution of assets, property etc in the event of separation. A cohabitation agreement is typically relevant to couples who have opted to live together without marriage. Couples who usually live together without marriage find it challenging to resolve property or asset division issues in the event of separation. The terms of a cohabitation agreement are important because couples who live together outside of marriage or civil union do not enjoy specific legal rights with regard to property etc.
Binding financial agreements should be drawn up in a fair and legitimate manner without coercion from either partner. The agreement should be voluntarily signed by each partner and each one should consider seeking competent legal advice before agreeing to the terms contained in the contract.