Wednesday, 11 November 2015

The Future of the Binding Financial Agreement



'Pre-nuptial’ Binding Financial Agreements are an important tool available to the cautious and well-prepared traveller through life.

They are particularly widely-requested from parties who have already been through one hotly-contested relationship breakdown and with good reason

These parties will often appreciate what people who have not been through litigation before will not; namely that any document or record of what happened at the beginning of a relationship is an invaluable tool should a relationship end.

They also have a more acute understanding of the legal system and the difficulties they may face in actually enforcing such a document, and so lawyers can take greater comfort in their client’s appreciation of this unavoidable difficulty.

The publicity surrounding swimmer Grant Hackett’s case, and his subsequently bringing claims against his former law firms will on the other hand give even greater pause to family lawyers than many already feel. Whatever the outcome, there will be valuable learning experiences in the case, and wise family lawyers will further strengthen and hone their advice as a result.

In the grand scheme of family law in Australia, the Binding Financial Agreement remains a novel document. Family lawyers should act accordingly cautiously, but at the same time take advantage of and advise about the advantages these documents can present to clients. They may form one part of a comprehensive asset-protection strategy, particularly for clients with an interest in a business or a small business with other partners.



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