Part 3 – Why isn’t my Binding Financial Agreement Binding?
In this blog, we’ll discuss some reasons why your Binding Financial Agreement (BFA) may be invalid. This is part three of our three-part series in relation to the BFA. To read the first two blogs, please click the following: Part 1 or Part 2.
Have you been told that your BFA is not binding? Or do you want to be extra sure that it is? Here are a few short answers to consider:
- Did you both see one lawyer to “save costs?”
- Please be aware that both parties need to be advised of the advantages and disadvantages of the agreement and the effect that agreement will have on their rights. To be advised correctly each party must have their own lawyer to avoid bias and conflict.
- Did one or the other deliberately hide their assets?
- The most common is superannuation, real estate held in a sole name, bank accounts, and any benefit received from your parent’s or Uncle Ernie’s Family Trust.
- This also includes not listing the value of the assets and liabilities at the time the agreement was signed.
- This dangerous clause can be worded, each party keeps what is in their own possession to the exclusion of all others.
- Was one party was coerced by the other?
- The cases support that coercion must be at an intolerable level, not because you don’t like confrontation and didn’t want to cause a fuss.
So, if you see a lawyer who says “No probs, you and your ex can sign off on this agreement in my office, it will only take an hour (or 5 minutes), you can waive your rights you do not need to know exactly what’s in the property pool,” hang up the phone, or if in the lawyers office, run, run very far away, as you are about to pay a lot of money, for something that is not worth a brass razoo and more than likely has affected your rights which will have a negative affect on your finances as well as your mental health.
For a more specific and detailed advice please pick up the phone and take advantage of our initial consultations to put you on the right road, to be informed is to be forewarned.