The rollercoaster of life does not always take us where we thought it would…right? You are sailing across the ocean, and it all appears calm…then suddenly there is a storm, your assets, ship, and crew are in danger. We all need a contingency in plan – a Plan B, especially where finances are at stake. In the absence of a Plan B, both women and men can be at risk of substantial financial disadvantage in the case of divorce with longer term consequences potentially affecting men.

Nevertheless, by preparing a contingency plan that protects your financial interests, you can mitigate the sudden storms and sail through the blasting winds of a precarious legal situation.

You may not be able to control the wind, but you can control the sails.  At HTW Legal – we shelter our clients through the process, protecting you from the “stormy legal environment”, and making sure you reach the shores safe with your “treasure”!

Family Law – Overview of Financial Binding Agreements and Financial separation agreements

The Family Law Act 1975 (Cth) allows married and de facto couples to mutually agree to a legally binding financial separation agreement which applies in the event of separation, and which gives transparency in resolving finances between the couple. A Binding Financial Agreement (a BFA) provides a “life jacket” in the case of a relationship breakdown, the mechanism to resolve disputes. This is pertinent to how assets are divided, maintenance of the parties, and other concerns operate smoothly; that is, without resort to court proceedings, the associated costs, and delays.

A BFA is enterable at any point during the relationship; however, it is advisable the agreement be in effect prior to marriage or entering a de facto relationship. Therefore, whether you have plans in the future of becoming stable, marrying, and building a family or maintaining a long-term de facto relationship; a BFA ensures peace of mind for all.

It is recommended to implement the agreement during the “honeymoon phase”. as it is more likely to result in a financial agreement that is equitable and fair to both parties, thus saving you time and money.

Why have a BFA?

A. The parties wish to reserve assets brought into the relationship for themselves for the ultimate benefit of themselves or other family members.

B. A party may wish to quarantine a future windfall gains e.g. lottery winnings, inheritances, from falling into the pool of divisible assets.

C. The parties may wish to have a defined process for finalisation of property division on separation thereby minimising conflict, providing certainty and limiting potential legal costs and delay.