Download Binding Financial Agreement template
It is not uncommon for clients to look for an online template that is available for download in order to reduce the costs of preparing a binding financial agreement. Some templates are available for purchase for less than $200, although the quality of these draft agreements may not provide the certainty and enforceability necessary to protect assets from further future claims. Most BFA templates for download have the hallmarks, and carry a similar degree of risk, as the DIY will kits available for purchase at the local newsagent.
There is no prescribed format for a Binding Financial Agreement to be valid under the Family Law Act. Provided that the requirements of the Act have been met (those requirements being primarily contained within section 90G or 90UG), then the BFA will be binding and enforceable regardless of what the underlying format of the binding financial agreement is, or what BFA template what used.
Regardless of what financial agreement template is used, if any, a certificate of independent legal advice must be issued for each party prior to that party executing the BFA. The legal advice provided should include perusal of the binding financial agreement template that has been used as a basis for the BFA being executed, and variations to the template should be made as recommended by the lawyer providing the certificate. As financial agreements will be invalid if improperly drafted, it is important to obtain a certificate from a solicitor with adequate experience in family law (such as a family law accredited specialist).
Content for Binding Financial Agreement template
Legal advice should be sought in relation to the drafting of the content within the binding financial agreement. A template is only a starting point, and each BFA must be individually tailored to the specific facts of the parties to the agreement. As a guide, we often use the following draft clauses as the basis for our draft binding financial agreements:
- Recital - "In order to arrange their property affairs and avoid litigation, the parties have agreed to enter into this binding financial agreement under the provisions of section [X] of the Family Law Act 1975 to deal with the division of their property, maintenance and their financial resources in the event of the breakdown of their relationship."
- Separation definition - "Separation is taken to have occurred when the parties have been living separately for no less than 3 months and one party notifies the other in writing that they intend to end the relationship. The parties will not be taken to have separated if they have been living separately solely due to holidays, illness or business."
- Division of joint property - "Joint property will be divided between them in accordance with their entitlements as evidenced in writing or title documentation and in the event of failure to agree as to who is to have possession of any jointly owned real property then both parties shall take all necessary steps and execute all necessary documents to cause any such real property to be sold by private treaty at the earliest possible date at a price to be agreed on between the parties and failing such agreement to be determined by the proper officer of the Real Estate Institute or their nominee and that the proceeds of the said sale be disbursed as follows..."
- Auction clause - "That in the event that the real property fails to be sold by private treaty within a period of 3 months hereof, then each party take all necessary steps and execute all necessary documents to cause the said property to be sold by auction at the earliest possible date at a reserve to be agreed upon between the parties and failing such agreement to be determined by the proper officer of the Real Estate Institute or their nominee and that the proceeds of the said sale be disbursed as follows..."
- Legal advice warranty - "That the parties each state and warrant to the other party that as recorded in this agreement and as certified in an annexure to this agreement that before this agreement was signed by him or her, he or she was provided with independent legal advice from a legal practitioner."
Download BFA template here
Use the contact email here to request your Binding Financial Agreement template.