Binding Financial Agreement: the importance of certifying that independent legal advice was obtained

Case Note: Black v Black [2008] FamCAFC 7

This case concerns a Binding Financial Agreement (BFA) that did not contain a statement that each party received independent legal advice before signing the Agreement.

A Binding Financial Agreement must contain a statement from each party that they received independent legal advice in relation to the effect of the agreement on the rights of the party and the advantages and disadvantages of making the agreement.

A BFA is binding “if and only if” this is strictly and fully complied with.

The Agreement in this case was not binding and was set aside.

Lesson

It is pivotal that a Binding Financial Agreement contain a statement that each party received independent legal advice in relation to the effect of the agreement on the rights of the party and the advantages and disadvantages of making the agreement prior to signing.

You can find out more about Binding Financial Agreements here.

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