Preparing an Airtight Binding Financial Agreements
Binding Financial Agreements (BFA), also referred to as “pre-nups” are created when two parties have made a fully informed decision to enter into a binding agreement. The creation of an Airtight Binding Financial Agreements requires the parties to disclose their financial position, provide reasonable time to consider the agreement and obtain independent legal representation to avoid any undue influence or pressure on the other party. This document effectively allocates assets and other financial resources in the event the marriage or relationship ceases. Whilst many people believe planning for divorce before the marriage begins is controversial or otherwise “unromantic”, a BFA is an integral part of prudent estate planning. This document is a mechanism similar to the preparation of a will or enduring power of attorney. Requirements of Creation To create binding financial agreements, several requirements must be met in accordance with the Family Law Act, including:
First and foremost, both parties must disclose their true financial or monetary asset position. In circumstances where one party attempts to hide significant assets from the spouse, the BFA may be set aside. The issue of timing is also paramount to enforceability. If you are planning on having children or have a significant life change coming up in the future, think about how these events will affect the BFA. The requirement of reasonable and fair provisions are also crucial to the legality of the document. If the document features overbearing provisions, causes unnecessary hardship on one party, or is unfair to the non-moneyed spouse, the Court may set aside the BFA. The last consideration, which is perhaps the most important, is the client’s receipt of competent independent legal advice and understanding of what constitutes unreasonable pressure, influence, demand, or conduct. If a person displayed behavior that is unconscionable, is likely to place undue influence or duress on the other party, the Court will usually set aside the agreement. To understand more, and seek clarity on your matter to create an Airtight Binding Financial Agreements please consider a Free 20-minute initial consultation with an experienced family lawyer in Brisbane. Article Source: Binding Financial Agreements
3 Comments
7/2/2022 01:10:07 pm
very important tips you share with us keep sharing more about technology blog tips please rugged handheld computers
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7/5/2022 12:02:49 pm
In circumstances where one party attempts to hide significant assets from the spouse, the bfa may be set aside. Thank you, amazing post!
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7/5/2022 01:50:54 pm
The requirement of reasonable and fair provisions are also crucial to the legality of the document. Thank you for the beautiful post!
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