How binding are so called Binding Financial Agreements?
Publish Date: June 11, 2008
A recent decision of the Family Court has put in doubt just how binding are the so called “binding financial agreements “.
While the intention of the law is to allow people to structure and plan for their financial affairs in the event of a separation , the Family Court Court protective of its power to make
over-riding property adjustment orders, has in a very recent decision, taken a very strict approach in interpreting the formal requirements of such agreements.
The requirements of the Act must be strictly adhered to including :
- That both parties receive independent legal advice before signing the agreement;
- That each solicitor provide a
certificate attesting to the very specific requirements of the Act;
- That both parties sign the one agreement and not two counterpart;
- Amendments, particularly handwritten amendments, should be avoided.
All existing Binding Financial Agreements (pre nuptial agreements ) should be reviewed in light of such recent decisions so as to ensure that they are indeed binding.
Given the strict compliance Rules specialist Family Lawyers should be instructed.
We at THE NORTON LAW GROUP offer the services of LAW SOCIETY ACCREDITED SPECIALIST FAMILY LAWYERS. Please contact us should you wish to prepare or review a Binding Financial Agreement.