How having a BFA might help your Succession Planning

Martial & De Facto Relationships: Succession Planning & BFA's

Binding Financial Agreement | DIY Family Law Australia

Increasingly, adult children often encourage a parent who is re-partnering (or has already re-partnered)  to enter into a Binding Financial Agreement. 

Adult children can frequently be concerned about how their parent's estate might be divided and what assets or family heirlooms might be lost.

Entering into a BFA in these circumstances, offers some protection in relation to the parent’s assets, against a possible claim by the parent's new spouse if that parent's new relationship breaks down and they separate. 

If a parent re-partners and enters into a Binding Financial Agreement with their new spouse, then depending on the provisions of their Will and what occurs following their death, a Binding Financial Agreement might also be helpful and relevant evidence as to the parent's intentions regarding provision for their spouse.

When there are assets such as a family business or a discretionary family trust, having a BFA can also be advantageous from a succession planning point of view. 

Business Relationships: Succession Planning and BFA's

If a business partner is married or in a de facto relationship, having a BFA could help protect the other business partner from:

  • the consequences of their business partner’s marital or de facto relationship breakdown and separation; and

  • being drawn into the property settlement proceedings, or the dispute between the business partner and their former husband / wife / de facto partner, which if it was drawn into the property settlement matter, would probably require disclosure of the business' financial position and financial records.

Binding Financial Agreements: What else you need to know

Learn the basics of Binding Financial Agreements you should know from the fact sheet What is a Binding Financial Agreement.

What are the important things you need to discuss with your partner before considering the terms of your Binding Financial Agreement? Do you know what you can or should put into a Binding Financial Agreement? Learn more in our fact sheet What can you include in a Binding Financial Agreement.

Do you want to prepare your own Binding Financial Agreement without a lawyer. Find out if you can in the fact sheet Can I prepare a Binding Financial Agreement myself.

You need to be eligible to lawfully enter into a Binding Financial Agreement. Check whether you are eligible by reading our fact sheet Who can enter into a Binding Financial Agreement.

When you enter into a Binding Financial Agreement could be important. We explain why in our fact sheet When can you enter into a Binding Financial Agreement.

People often start living together, get engaged, have a baby or even get married and only later think about doing a Binding Financial Agreement. If this applies to you then read the fact sheet Is it too late to enter into a Binding Financial Agreement.

There are various different types of Binding Financial Agreements which mean if you do not use the correct Binding Financial Agreement for your circumstances it may later be set aside. If you are thinking about entering into a BFA you need to know the information in the fact sheet Types of Binding Financial Agreements & What type of BFA do I need.

Can Binding Financial Agreements actually protect assets and income? We explain in our fact sheet Are Binding Financial Agreements actually Binding.

Read what the benefits might be to you of having a Binding Financial Agreement in our fact sheet What are the Advantages of a Binding Financial Agreement.

There may also be a downside to getting a Binding Financial Agreement in place with your partner. Find out more in our fact sheet What are the Disadvantages of a Binding Financial Agreement.

Questions such as can you update or change Binding Financial Agreements, in what circumstances might a court declare your Agreement invalid and set it aside are discussed in the fact sheet Can a Binding Financial Agreement be set aside, updated or terminated.

Our fact sheet How to tell my Partner you want a Binding Financial Agreement may also help you.

If you are separated or divorced and want to document your property settlement division agreement in a legally binding and enforceable way, read the fact sheet Should I use a Binding Financial Agreement or a Consent Order as it contains important information for you.


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Content By:
Michelle Beatty, Senior Lawyer
Virtual Legal

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