When binding financial agreements were first introduced in 2000, the law called them Binding Financial Agreements, but they were only available to married people. For reasons known only to those who drafted the legislation, the word “compulsory” has been dropped and, since 2008, they are simply known as “financial agreements”. Since these financial agreements must meet strict legal requirements to ensure their legal binding nature, they are not cheap. However, in the context of the possible prevention of the stress and financial devastation that could result from future bitter legal proceedings, the initial burden on future rest is certainly worth it. Couples might want to make deals before getting married, to make sure you both understand what happens if the marriage fails, as relationship breakdowns often lead to property and financial disputes. Contact our section experts on 0161 696 6193. There is no defined formula for calculating financial compensation or contracts. Instead, the court has a very broad margin of appreciation as to what steps it can take to assess financial comparisons. Courts consider a variety of factors, including each child, the needs of the parties, the resources, the length of your marriage and your respective contributions. We are happy to advise you on how important these factors are to you. An agreement with the other party has many advantages, such as: mediation is increasingly popular in the settlement of divorce disputes and is actively encouraged by family courts. Normally, you must prove that you have at least considered mediation by participating in a mediation and evaluation information meeting before you can take the matter to court. In some cases, the three elements are linked in a single transaction and neither party can make additional claims against the other.
This is commonly referred to as “clean breakage.” A BFA may include financial compensation, including supernuation rights, spousal support and any other financial matters between the parties (except custody of the children). The Family Act of 1975 provides for parties to a marriage or, de facto, to enter into a binding legal agreement on financial arrangements in the event of a breakdown of their marriage or de facto relationship.