Many couples think of a Binding Financial Agreement (BFA) as a pre-nup, but it is much more than just that. Usually drawn up by a family lawyer such as Robinson Family Lawyers, a BFA can be entered into at any stage of a relationship; before, during or after a marriage or de-facto relationship is entered into. If you were wondering what benefits such an agreement has, here are some of them.
- When a BFA is drawn up when a couple are still happy, either before or during a relationship, it is highly likely to contain elements that are reasonable and agreeable to both parties. So if the relationship then fails, there is no need for either party to worry about whether it is fair or just.
- People these days often go through more than one relationship. It can give a previously divorced person peace of mind that they won’t lose everything should another relationship failure occur.
- Although a BFA can be made at any time, making one before or during a relationship is less stressful than making one after a breakup.
- It can reassure the more financially stable party that their partner is not just marrying them for their money.
- A BFA can be used to lay down ground rules about finances during a relationship. It can specify who will pay specific bills and who will be responsible for certain debts, as well as defining how much and where money should be spent.
- It is much more cost effective to have a BFA drawn up beforehand than to go to court for settlement afterwards.