Protecting your assets with a Binding Financial Agreement

When two people choose to live together in a de facto relationship or a marriage, they each bring with them assets, liabilities and financial resources that they have acquired prior to the relationship. In some cases, they will have accumulated this from their own respective incomes and endeavours and in others, they may have received gifts or inheritances from their families. During the relationship, they may also receive further benefits and gifts from their family and on occasion, family wealth and assets of significant value may be passed down to them.

The role of trusts and financial structures

While it can be useful to hold family assets in trusts and other structures, the only truly effective way to protect assets received from family from a divorce or separation is to enter into a Binding Financial Agreement (BFA) with your partner either prior to or during your relationship.