Section 90UD Binding Financial Agreement: Understanding the Basics
If you`re going through a divorce or separation, you may have heard about a Section 90UD Binding Financial Agreement. This legal document is becoming increasingly popular for couples looking to save time and money by avoiding court battles over assets and finances. So, what is it exactly? In this article, we`ll break down the basics of a Section 90UD Binding Financial Agreement and why you might consider one.
What is a Section 90UD Binding Financial Agreement?
A Section 90UD Binding Financial Agreement (BFA) is a legal document between couples who are either separating, divorced, or considering getting married or entering into a de facto relationship. It outlines how their assets, liabilities, and financial resources will be divided in the event of a separation or divorce. It`s called “binding” because it legally binds the parties to a particular agreement. It`s a private and confidential agreement that must be drafted and signed by both parties, usually with the help of lawyers.
Why Consider a Section 90UD Binding Financial Agreement?
There are several reasons why a Section 90UD Binding Financial Agreement might be beneficial for you, such as:
1. Control: You and your partner can take control of the division of your own assets and finances, rather than leaving it up to a court to decide.
2. Certainty: A Section 90UD BFA provides certainty and clarity on financial arrangements, reducing the risk of future disputes.
3. Time and cost savings: It can be a much quicker and cheaper process than going through a court, which can save you time and money.
4. Protection: It can provide protection for certain assets or financial interests, such as businesses or investments.
Requirements for a Section 90UD Binding Financial Agreement
To be legally binding, a Section 90UD BFA must meet certain requirements, including:
1. It must be in writing and signed by both parties.
2. It must include a statement from each party that they have received independent legal advice before signing.
3. It must include a certificate from each party`s lawyer stating that they have provided such advice.
4. It must not be signed under duress or undue influence.
5. It must comply with the Family Law Act 1975.
Conclusion
A Section 90UD Binding Financial Agreement can be a practical and cost-effective way of dividing assets and finances in the event of a separation or divorce. However, it`s important to seek independent legal advice before signing such an agreement. Only an experienced family law attorney can properly advise you on the terms and legal implications of a Section 90UD BFA.
