Many people in their middle-aged years will enter into a new relationship and they wish to protect their wealth, which is understandable. If both parties are in agreement regarding their assets and personal finances, they can approach a family lawyer who can draft a Binding Financial Agreement, known as BFA.
Wealth Protection
Doesn’t it make sense to protect the wealth that you have generated over the years? We’ve all heard the stories of wealthy people having to give 50% of their wealth to a recently divorced partner when that wealth was generated before the relationship even began. Check out www.marsdens.net.au/services/family-law/, a leading Australian law firm with all the solutions.
A True Test of Intention
Let’s imagine for a moment that a man asks his new partner to sign a BFA and she is reluctant to do so; this would cause the man to reconsider making a commitment. Many wealthy folk insist on a BFA when they enter into a long-term relationship and they regard this as a test of intention. If a woman is in love, why would she be upset if her partner wishes to protect assets they acquired in the past?
Defining Joint Assets
The aim of a BFA is to clearly define what are considered to be joint assets and what are agreed as personal assets that are not subject to division in the event the relationship ends. This eliminates the potential for conflict further down the road and who wouldn’t want to do that? The lawyer can word the agreement in such a way that it is easy to comprehend and when signed and witnessed, the agreement is legally binding.
Worthy of Discussion
If you are planning a second marriage, why not talk to your new partner about an agreement to clearly define assets? Once you both see the benefits, you can contact a local family lawyer and draft the agreement. This will ensure that there are no misunderstandings should you ever decide to end the relationship and that works both ways.
For more detailed information about BFAs, we advise you to talk to a local family law firm and make an appointment to discuss your needs with a legal expert.