As Family Lawyers we are often asked about "Pre-Nups".
A Pre-Nup is known as a Binding Financial Agreement (or
"BFA") in Australia. It is an agreement made between
parties to a relationship, outside of the court process, that
dictates how their assets and liabilities will be divided if the
relationship breaks down.
A BFA allows the parties to deal with the division of their
finances by contractual means instead of going through the family
court system.
In many instances, the BFA is entered into before marriage or
before commencing a de facto relationship.
In some situations, the relationship has already broken down and
the parties utilise a BFA to decide what property each will
receive. BFA's can also be made during the relationship in
advance of any relationship problems. BFA's can be made by
married couples and defacto couples alike.
