info@remaccounting.com.au
  • (03) 8797 5399
  • Recent News – REM Accounting
    • Home
    • Our Difference
    • Services
      • Accounting & Tax
      • Self-Managed Superannuation Funds
      • Business Advisory
      • CFO Advisory
    • Resources
      • Recent News
      • Useful Links
    • Contact Us

    What you need to know about BFAs

    By admin • 14 December 2019 • Money

    A Binding Financial Agreement (BFA) is the Australian equivalent of a prenup. It is used to agree in advance on how a couple’s property and other assets would be distributed should their marriage or de facto relationship break down. The Agreement can cover financial settlement, spousal maintenance and any other incidental issues.

    BFA’s can be entered into at any stage of a relationship, i.e. before, during or after a marriage or de facto relationship. Couples may consider entering into a BFA if one party has more property, assets or is expected to receive an inheritance at a later stage.

    Some benefits of entering a Binding Financial Agreement include:

    • Establishing a level of reassurance if one or both partners has been through a separation or divorce before.
    • Protecting some or all of the assets from each party.
    • Being able to specify the ground rules when it comes to how the couple will acquire property, who will pay the bills, and where weekly wages or income will be saved.
    • Preserve family or other businesses for future generations.

    Properly drafted and executed BFA’s are particularly beneficial for those who want to establish a level of reassurance that there would be a harmonious division of property and assets in the circumstance of separation or divorce without the need for stressful court action. A BFA can also make both parties feel secure knowing that any property or assets accumulated before their relationship or marriage is safe.

    Couples should also be aware, however, that there can be some risks and downsides to entering a BFA. They include:

    • Legal fees for drafting the agreement.
    • Content of the agreement may be complicated.
    • Use of the agreement could be unfair to one half of the couple.

    Couples also need to ensure that the BFA is in fact binding. Both parties must sign the BFA and receive independent legal and financial advice before doing so. It is also worthwhile to evaluate the potential effects of the BFA on the relationship, especially if it is considered unfair to one half of the couple.

    Tweet
    0
    Paying tax on term deposits
    Doing market research for your business

    About the Author

    admin

    You Might Also Like

    • Spotting unauthorised and mistaken transactions

      Spotting unauthorised and mistaken transactions

    • How you can repair the errors in your credit score

      How you can repair the errors in your credit score

    • Stay on top of your credit cards

      Stay on top of your credit cards

    • Do these things on every payday

      Do these 3 things on every payday

    No Comments

      Leave a Reply Cancel Reply

      You must be logged in to post a comment.

      Recent Posts

      • Spotting unauthorised and mistaken transactions
      • What you need to do before you buy an existing business
      • How does employer liability change with remote working conditions?
      • Advantages and disadvantages of home reversion
      • Do you need to be paying luxury car tax?

      Archives

      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018

      Categories

      • Business
      • Legal
      • Money
      • People
      • Super
      • Tax
      • Web

      RECENT COMMENTS

        Subscribe & Follow

        Subscribe to our newsletter and keep up to date with the latest news from REM Accounting & Advisory

        REM accounting logo
        • Accounting & Tax
        • Self-Managed Superannuation Funds
        • Business Advisory
        • CFO Advisory

        Association LogoAssociation Logo
        Copyright © 2018 REM Accounting and Advisory | Privacy Policy

        Liability limited by a scheme approved under Professional Standards Legislation