Genders and Partners

Binding Financial Agreements are an Important Part of Modern Estate Planning

Binding Financial Agreements are an Important Part of Modern Estate Planning

Binding Financial Agreements Are an Important Part of Modern Estate Planning
Modern relationships are fraught with tension and complexities when it comes to finances. Looking ahead to the time when you and your partner are established in your careers and have accrued considerable assets, it makes sense to want to protect what is yours should the relationship end.

Marriage, de facto and domestic partnerships

Australian Census data from 2011 shows that the married proportion of the total population has been falling. It is no longer the case that a majority of the population is married. Not so long ago the married proportion was as high as two-thirds of the entire population during the mid-20th century.  In 2011, this has dropped to less than half., and the relative divorce rate in Australia remains one of the highest in the world.

This may be because we are marrying later, and are not necessarily remaining married for life.

Of course, many Australians live in de facto marriages, or cohabiting relationships, sometimes called “domestic partnerships”. This type of relationship is very popular among certain groups in society, especially people in their mid-20’s, people who have already experienced a failed relationship, and same-sex couples.

“Once Bitten, Twice Shy”

An unwillingness to commit too-deeply, too-soon is especially common if you’ve been destroyed emotionally AND financially by a contentious breakup or divorce in the past. A binding financial agreement (BFA) prepared by the specialist Adelaide estate planning law firm, Genders & Partners is the key to putting your fears to rest so that you can commit to your relationship with peace of mind.

Binding Financial Agreements Explained

A binding financial agreement is sometimes called a prenuptial agreement, but you do not need to be married to enter into this type of contract with your partner. A BFA can be employed if you are in a de facto relationship, including a same-sex relationship. The contract lays out how your assets, including those acquired during the course of the relationship, will be divided if you go your separate ways. If applicable, it also makes provisions for support to be paid to the person who earns less. A BFA is often initiated at the start of or early in the relationship rather than after the breakup. Anyone who has assets of value, especially if one partner has considerably more than the other, is an ideal candidate for this type of agreement.

Entering Into a BFA

A lawyer is necessary for entering into a BFA, and you and your partner must obtain lawyers at different firms. Both partners must also be willing to enter into the agreement of their own free will. If your partner refuses, you cannot proceed, in which case you may want to consider your position regarding both the BFA and the relationship.

If you and your partner agree to move forward, you may begin the process by meeting with specialist Adelaide estate planning law firm Genders & Partners to draw up a draft of the BFA. Once you approve the terms, we will present the document to your partner and his or her lawyers. You, your partner and both sets of lawyers can then discuss the terms and negotiate until we reach an agreement that both parties are willing to sign.

Binding Financial Agreement Lawyer in Adelaide

Without the protection of a binding financial agreement, an ex-partner can attempt to lay claim to your precious assets, which can affect your family and future relationships. Our estate planning and wills law firm in Adelaide specialises in protecting all of your assets during various phases of your life, so contact our South Australia law firm today for your free telephone consultation.

SPECIAL REPORT “7 Things You Must Know Before You Make Your Will”

In this report you will Learn:

  • Why home-made Wills can be a LOT more expensive than you might think.

  • The secret weapons used by the rich & powerful to protect their assets, and transfer their wealth two or three generations ahead.

  • How Estate and Trustee Companies make BIG money from “free” Wills.

  • The Most Common Estate Planning Mistakes, how they can cost your family a fortune, and How to Avoid Them.

  • The Elements of a Sound Estate Plan – why a Will alone is not enough.

  • How to Make Sure Your Assets Stay in Your Family and are not lost to creditors, lawsuits or ex-spouses.

  • How to guard against challenges to your Estate after you’re gone.

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