Most people are familiar with the idea of a prenuptial agreement, or “prenup”. In Australia they are called Binding Financial Agreements (“BFAs”). You may not know that BFAs can be made during a marriage or de facto relationship.
Most people enter into a post nuptial agreement because the financial status of one or both of the spouses has changed significantly since the wedding day or during their de facto relationship.
Like a prenuptial agreement, the postnuptial BFA can deal with:
- the division and/or distribution of property in case of separation
- the extent to which one or both spouses is the recipient of income from various sources.
- who is responsible for the debts from various sources.
- entitlements to spouse maintenance after separation
You might want to consider a BFA during your relationship if:
- one partner is starting a business, and the other partner wants to be protected from debts , or ensure some share of the business
- one of you receives an inheritance or compensation payment and wants to keep it separate from your marital assets
- separate property is used to purchase joint property. For example, when a couple agrees to use separate property to buy a marital residence. A postnuptial BFA may be negotiated so that the spouse who uses their separate property still gets the same benefits as if it had been kept separate.
For more information about BFAs or your property rights should you separate, contact one of our experienced family lawyers via our contact page or call 1800 324 324.