Binding Financial Agreements
A Binding Financial Agreement (or ‘BFA’) is a legally binding contract that parties to a relationship must follow in the event of separation with respect to finances. A BFA can be made with respect to the division of assets, spousal maintenance, and child support payments.  These agreements can actually be put in place:
– Before marriage or de facto relationship (Pre-nup) – There is a common misconception that these agreements “don’t hold up in court” or “aren’t worth the paper they are printed on” however this is factually incorrect;
– During marriage or de facto relationship (Post-nup); or
– After breakup (general property settlement) – to avoid the need for court intervention.

A key requirement for any BFA is that both parties must be certified to be fully informed by independent (i.e. different) legal advisors about their rights relating to the agreement. Only after such certification can a BFA be enforceable.

Court Orders & Consent Orders
A Court Order is a formal and binding order to finalise affairs following the breakdown of a relationship. If both parties are able to agree on terms regarding a fair and appropriate distribution of finances, or time with children, the parties can apply together to the court for the order to be granted with consent. When parties agree on the proposed terms of the Court Order, it is commonly known as a Consent Order. If either party breaches a Court Order, whether or not it was made with consent, the breaching party faces serious consequences. Court and Consent Orders may be applied for with respect to:
– Finances and property settlement
– Parenting and child custody arrangements

If either party to the relationship breakdown is not cooperating with the other to allow for a Consent Order, applying for a court order may be the only option. Unfortunately, this is where things become very expensive so we believe both parties should always attempt to avoid such a situation.

Divorce Orders
If you are married and the relationship breaks down, it is not enough to simply separate. You must file in court for a Divorce Order (formerly called a Divorce Certificate or Decree). If you do not do this and you pass away without a proper will or estate plan, your ex-partner will be entitled to claim a significant part (or all) of your assets.  In Queensland, if you have a will, Section 15 of the Succession Act 1981 (Qld) sets out that a formal divorce will revoke or nullify any gift or entitlement to your former spouse within your will (unless your will specifically states otherwise).