The Benefits of Drawing Up a BFA
Whilst it does not sound like a romantic thing to do, especially if you are making marriage plans, a prenuptial agreement often assists in making things easier should a divorce occur later. Naturally, no one wants his or her marriage to fail. Therefore, if you discuss a prenuptial agreement—also known as a binding financial agreement (BFA)—with your partner, you may get a less-than-receptive response.
However, if you have been previously married or are involved in a business with your partner, this type of agreement can be advantageous. For example, a prenuptial contract can safeguard the inheritance of your children and grandchildren from a prior marriage. It can also shelter a business from ending up in the hands of one of the partners during a divorce.
How the Contract Is Used
Often, a prenuptial agreement or BFA is drawn up to restrict the amount of spousal support that one of the parties has to pay in a divorce case. In the case of older people or people entering a second or third marriage, a prenuptial agreement can be used to secure their financial interests. Wealthy people who are entering a marriage also can benefit from this type of agreement.
Whatever your reason for contacting an Adelaide family law specialist about a BFA, the contract serves as a type of insurance. Hopefully, you will never need to use this monetary safety net. However, by looking into the agreement’s benefits, you are also playing it safe with respect to your legal and financial health.
BFAs Can Be Drawn Up for Married Couples
If you have already married, you can also draw up a BFA. This agreement extends to married couples as well as de facto and homosexual partners. Whilst the law related to a prenuptial agreement or BFA is the same for married couples throughout Australia, there are some variances for other couples amongst the states.
Therefore, if you are interested in drawing up a BFA, you need to talk to a family law solicitor about your situation. See if creating this type of agreement is in your best legal and financial interests. Again, if you work in a business with your partner, own substantial wealth, or are entering into a second marriage, you may want to further explore the facets of this type of contract.
Some important notes to consider – If you currently do not have children, and future children are not mentioned in the BFA, it will make the contract void. However, if spousal maintenance is mentioned in a BFA, it is binding and you cannot make any changes once it is included in the contract.
Needless to say, you need to discuss the benefits of this type of agreement with a knowledgeable family solicitor. Talk to a specialist in family law to find out how this type of contract may be helpful to you and your partner.