If you`re going through a divorce, you may have heard of a Binding Financial Agreement (BFA). A BFA is a legally binding agreement between two parties that sets out how their finances will be divided in the event of a separation or divorce. While a BFA can be a useful tool for couples looking to protect their assets, it`s important to ensure that the agreement is fair and legally enforceable.
One of the key principles of a fair BFA is procedural fairness. This means that both parties should have had an opportunity to obtain independent legal advice, and that the terms of the agreement should be clear and understandable. If one party has pressured the other into signing the agreement or if one party was unaware of their rights or the consequences of the agreement, the BFA may be deemed unenforceable.
To ensure that your BFA is procedurally fair, it`s important to seek the advice of an experienced family law lawyer. Your lawyer can explain your rights and obligations under the agreement, as well as identify any potential issues that could render the agreement unenforceable. It`s also important to ensure that there was no undue pressure or influence exerted on either party to sign the agreement.
Another important aspect of procedural fairness is disclosure. Both parties must disclose all of their assets and liabilities before entering into the agreement. If one party fails to disclose all of their assets, the agreement may be set aside.
If you`re considering a BFA, it`s important to ensure that the agreement is procedurally fair. By seeking the advice of a family law lawyer and ensuring that both parties have had an opportunity to obtain independent legal advice, you can help to ensure that your BFA is enforceable and protects your assets in the event of a separation or divorce.