Whether it is called pre-nuptial agreement, post-nuptial agreement or cohabitation agreement, all of these are collectively called as binding financial agreements or BFA. This agreement lets the couple agree in advance on how they would like to divide or separate their property just in case their relationship doesn’t work and end in divorce.
BFA makes it a lot easier at court when deciding about the property distribution since it is already stated certainly in the agreement. It can also shorten the process or court action because the property distribution is already settled in advance. Here are some of the important things you need to know about binding financial agreements.
When Can You Get A BFA?
First of all, you might be curious on when you could get a BFA for yourself. According to financial agreements family law, a couple can apply for a BFA before, during and after their relationship or marriage.
Its Power On Court
BFA is basically powerful and binding on court that’s why it is essential that it’s written or setup properly. There are some requirements that should be met by the BFA in order for it to be strongly written. However, if these conditions are not met, the agreement can be voided or set aside. To be sure that everything goes smooth and hassle free, be sure that you get the said conditions and seek legal counsel too.
What Does It Cover?
The BFA states specifically on how a couple wants to divide their assets when their relationship falls apart. It ranges from financial settlement, support, child custody, and other issues. Aside from that, it also deals with common issues associated with separation such as protecting inheritance, preserving businesses, and other more complicated issues.
Factors That Are Taken into Account
Just like other agreements, there are also several factors that need to be taken into account when getting a BFA. First, they will see the occupation and the way they earn in a day. Your lawyer will also check the properties their client owns and know how much these assets are worth. The start of the relationship between two parties is also an important detail in making a good binding financial agreement.
Once your BFA is well written, you and your partner will feel sure that both of your assets are safe no matter what happens. Good BFA helps you avoid unnecessary trouble and arguments between the spouses especially when their relationship ends.
Aside from reducing the trouble of dividing assets between spouses, BFA also ensures the clients that all the properties they have acquired before the relationship or marriage is safe and is all theirs. It saves a lot of time and costs since it speeds up the process of whichever case you have.
Binding financial agreements help a lot in bringing certainty to assets division and making your case less stressful and costly since there will be lesser or no delays at the court while your case is being processed.