Yes you can!!

In Australia, a prenuptial agreement is called a Binding Financial Agreement (BFA). Essentially a Binding Financial Agreement is a contract as to how assets will be distributed if a couple were to separate.

A Binding Financial Agreement is one part of your overall asset protection strategy, and they are becoming more and more popular and common. The major driver for this, is that people are getting married later in life, and as such, have accumulated more assets that need protection if anything were to happen down the road.

Without a Binding Financial Agreement, the court can determine what happens with your property and in many circumstances this can lead to significant and unfair outcomes to the people who have worked hard to accumulate their wealth. A BFA is cost effective way to protect assets you’ve worked hard to earn, protect your business, protect your inheritance and make sure your children are looked after.

Binding Financial Agreements operate a little differently to prenups in the USA. In Australia, Binding Financial Agreement can be used before or even during marriage (these are known as postnuptial agreements), and may even be used where you are in a long term relationship with your partner and you are not actually married to each other (referred to as De Facto Relationships).

Binding Financial Agreements are valid if they are properly made. Each Binding Financial Agreement must be tailored to your individual circumstances for it to be effective. It is all too common that a Binding Financial Agreement be set aside by the Family Court if they are not properly drafted and executed. These reasons may include:

• The Binding Financial Agreement was obtained by fraud or duress, such as threatening to cancel your wedding if the Binding Financial Agreement is not signed;
• Failure to disclose relevant assets or information; or
• Significant changes to a party’s circumstances affecting their ability to carry out the Binding Financial Agreement.

If you are looking for advice on Binding Financial Agreements and asset protection, give us a call on 9824 2222 and we will be happy to help you!