Signing a Binding Financial Agreement? You must hire a lawyer!

In Australia, Binding Financial Agreements (BFAs) differ from other standard contracts.

Normally, if the parties are capable, they can privately draft a standard contract on their own. However, a BFA must be handled by a lawyer who, at the time the parties sign the agreement, issues a certificate confirming that the lawyer has fully explained all the contents of the BFA to the parties. This ensures that the parties fully understand the contents of the BFA and that their signing is voluntary. Therefore, BFAs must be processed by a lawyer.

This provision exists because family law concerning the settlement agreements for property distribution involves significant property rights of the parties. If a party regrets signing a BFA later, claiming they were unclear about what they were signing at the time, it would be difficult for the court to determine the validity of the BFA.

If you have any legal questions regarding a binding financial agreement, please contact us immediately. Our Family Lawyers will answer your legal questions and provide you with professional strategies to safeguard your rights.

*Disclaimer: The above content is provided as general legal knowledge and should not be taken as specific advice for your individual situation. The law is complex, and we strongly recommend consulting professional legal advice. Canaan Lawyers shall not be held liable for any loss or damage caused by the information contained or omitted in the above content.