What is a Binding Financial Agreement?
Binding Financial Agreements (or prenuptial agreements as they are called in the USA), provide a way to formalise agreement between couples as to the division of their assets and liabilities. At the end of a relationship they can be used as an alternative to entering into Consent Orders through the Family Court.
Once a Binding Financial Agreement is made, the Agreement determines how the property of the marriage or relationship is to be divided if the relationship ends. If a Binding Financial Agreement is in place, and complies with the requirements set out in the Family Law Act 1975, both parties are bound by the agreement and cannot apply to the Court in relation to the division of property.
For a Financial Agreement to be binding both parties must receive independent legal advice in relation to their rights and the advantages and disadvantages of entering into the Agreement.
