What Is A Binding Financial Agreement?

This area of law can be confusing and many people wonder what is a binding financial agreement and why they should get one. A good family lawyer will be able to help you to understand whether a binding financial agreement is right decision for you and give you a good idea of costs, or even a fixed fee, for a binding financial agreement.

What is a binding financial agreement?
A binding financial agreement is a legal document, sometimes known as a separation argreement, that is designed to finalise a financial separation or protect the assets and interests of parties prior to commencing a relationship or during a relationship. It can be a very complicated document and so it is a good idea to get a good family lawyer with experience to draft the document. There are many legal requirements to a binding financial agreement one of the most important is that both parties must receive independent legal advice and each lawyer must sign a declaration that they have provided that advice in order for the agreement to be binding.

Is a binding financial agreement a pre-nup?
A BFA is sometimes called a pre-nup. When being used as a pre-nup, a BFA is a great way to protect your assets when you are starting a relationship, getting married or already in a relationship. A BFA will address all of your assets and liabilities and outline how they are to be divided should the parties ever separate. It can be a great idea to have a BFA exceuted before the emotions of a separation are high so this one thing you do no have to worry about should the relationship not work out.

Should I do a consent order or a binding financial agreement?
This is a question that you will need to ask your separation solicitor. There is no 'one size fits all' for BFAs so it is important that you find the best family lawyer to provide you with expert advice about what is best for you. Consent orders are certified by the court and binding financial agreements are just signed off on lawyers, not sent through to the court. It depends on the circumstances of your case as to which one you should use to finalise your financial agreement.

We are experienced in financial agreements and provide fixed fees for binding financial agreements as well as our other services. While you will be able to find a separation solicitor that can quickly draft a BFA or sign a BFA for you, this is a complex area of law and you need to make sure you that you find the best family lawyer with expertise in this area to ensure that your interests are protected.

Contact us for more information or to book a free initial consultation with a family lawyer.

This information does not constitute legal advice. You should consult with a lawyer to obtain independent legal advice relevant to your situation.

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