What are the different types of Binding Financial Agreements & which one should I use

The different Types of Binding Financial Agreements 

Do you have concerns about:

• protecting the assets you have worked hard to get;

• protecting your future income in case of relationship breakdown;

• making sure you (and any children) are adequately looked after if your relationship fails;

• having made sacrifices for your relationship which might disadvantage you if you break up.

Are you thinking of entering into a Binding Financial Agreement with your partner? If so, you need to know more about the type of Binding Financial Agreements that exist to work out which type you need.

What Sort of Binding Financial Agreements are there?

There are different types of Binding Financial Agreement’s depending upon the nature and stage of your relationship.

It is very important that you enter into the correct type of Binding Financial Agreement that applies to your relationship.

 

 

If you enter into the wrong type of Binding Financial Agreement it may well be found to be invalid and so able to be set aside.

The type of Binding Financial Agreement you enter into depends on the stage and nature of your relationship.

Which type of Binding Financial Agreement you need depends on whether you are:

• Already living together (already commenced cohabitation) in a de facto relationship;

• Intending to commence living together (cohabiting) in a de facto relationship;

• Intending to marry;

• Already married;

• Separated after a de facto relationship;

• Separated after a marital relationship;

• Divorced

What type of Binding Financial Agreement do I need

If you want to live together as a de facto couple and are not yet living together, then you would enter into a “Cohabitation Agreement”, a Section 90UB Agreement.

If you are already living together as a de facto couple, then you would enter into a “Cohabitation Agreement”, a Section 90UC Agreement.

If you are intending to marry you would enter into a “Pre Nuptial Agreement”, a Section 90B Agreement.

If you are already married, whether you intend to stay married or separate, you would enter into a “Post Nuptial Agreement”, a Section 90C Agreement.

If you are separated then you would enter into a “Separation Agreement”. There are however there are different types of Separation Agreements depending on whether you were in a de facto relationship (a Section 90UD Agreement) or whether you were married (a Section 90D Agreement).

If you are already divorced and want to document your property settlement in a Binding Financial Agreement then you would use a “Divorce Agreement”, a Section 90C Agreement.

Different sections of the Family Law Act 1975 apply to each of these types of Binding Financial Agreements. The types of Agreements and the Sections that apply are the same for opposite sex or same sex couples.

Binding Financial Agreements: More you need to know

Read about the advantages of making a Binding Financial Agreement in the information sheet What are the Benefits of a Binding Financial Agreement.

There might also be a downside to doing a Binding Financial Agreement. Read more in the information sheet What are the Disadvantages of a Binding Financial Agreement.

We explain the basics about Binding Financial Agreements you should know in our information sheet What is a Binding Financial Agreement.

What can you include in your Binding Financial Agreement? What should you discuss with your partner before you enter into a BFA? Find out from our information sheet What can you put into a Binding Financial Agreement.

Do you want to draft your Binding Financial Agreement yourself without lawyers? We explain whether you can in the information sheet Can I prepare a Binding Financial Agreement myself.

Are you and your partner both eligible to legally enter into a Binding Financial Agreement. See the information sheet Who can enter into a Binding Financial Agreement.

The timing of when you make your Binding Financial Agreement could be important. We explain this in our information sheet When can you enter into a Binding Financial Agreement.

People often start living together, get engaged, have a baby or even get married and only then think about making a Binding Financial Agreement. If this reflects your circumstances, you should read the information sheet Is it too late to enter into a Binding Financial Agreement.

Can a Binding Financial Agreement actually work to protect your income and hard earned assets? Find out in the information sheet Are Binding Financial Agreements really Binding.

Questions including can your Binding Financial Agreement be changed or updated, when might have a court declare your Agreement invalid and set it aside are answered in our information sheet Can your Binding Financial Agreement be set aside, updated or terminated.

The information sheet How to tell my Partner I want a Binding Financial Agreement might also be very helpful to you.

If have entered into a new relationship or are considering doing so, you should also think about the provisions of your Will or what might happen after you die. You really need to know the information in the information sheet How having a Binding Financial Agreement might help your Succession Planning.

If you are divorced or separated and need to document your property settlement agreement in an enforceable and legally binding way, then our information sheet Should I use a Binding Financial Agreement or a Consent Order will assist you.

 

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