Before we explore the topic of ‘how much does a binding financial agreement cost’, let’s first understand what a binding financial agreement is.
A binding financial agreement, commonly called a BFA, a prenuptial agreement or simply a prenup is an agreement which a couple enters into, which detail how the parties’ assets, property, superannuation and liabilities will be divided in the event of a breakdown of their marriage or relationship.
According to the Family law Act (1975), when a couple enters into a BFA, they give up their rights and authority to determine any property-related or finance-related matters in the event their relationship ends.
BFAs can be entered into either before a relationship, during a relationship, or after a relationship. This is an important document as it prevents any unnecessary conflicts or disputes from arising in case a couple goes through a divorce or separation.
How Much Does A Binding Financial Agreement Cost?
But when dealing with BFAs, couples often wonder how much does a binding financial agreement cost? The answer to this question, unfortunately, is not straightforward. To know how much does a binding financial agreement cost, there are many factors that need to be considered.
For instance, based on the the number of assets and liabilities the couples have, the cost may vary. Similarly, when seeking help of professionals, the costs may vary depending upon the complexity of your matter, and how much time it took for the solicitors to finalise your BFA.
We will explore the subject of ‘how much does a binding financial agreement cost’ in detail in subsequent sections. Before that, let’s understand the importance of preparing BFAs. Because of the lack of a clear answer of ‘how much does a binding financial agreement cost’ many people are discouraged from preparing BFAs.
Why Are BFAs Important?
There are many reasons why entering into BFAs are crucial. These reasons definitely trump the uncertainty around ‘how much does a binding financial agreement cost’. While analysing the following reasons, you will realise that no matter how complex your matter is, preparing a BFA is very essential.
Upon realising that you are about to get a divorce, or separate from your spouse, having a BFA prepared offers certainty around matters such as property settlement. Generally, these are issues that add great stress, but with BFAs in place you can rest assured that property settlement and division of assets will take place without any hassle.
Alternative to court
In the absence of a BFA, it is not uncommon for disputes to arise between separated spouses. In such an event, they often have to approach the court to resolve their conflicts. This is usually a very lengthy and complicated process.
BFAs are great alternatives and are more cost-effective. When wondering ‘how much does a binding financial agreement cost’, it is important to note that in the absence of a BFA if you have to approach the court, it is highly likely that the latter will cost more than preparing a prenup.
By seeking guidance from experts like family law solicitors, prenups can be prepared very quickly, with great ease and efficiency.
As opposed to this, in case you have to approach the court for property settlement matters following divorce/separation, the time it takes to apply for consent orders, and receive approval from courts is too long.
To ensure that you receive equitable shares, BFAs are important. This is especially true when you wish that your property and assets should go to your children. Entering into BFAs gives this protection.
While preparing a BFA, both parties have the opportunity to discuss property settlement matters and check how assets must be divided among themselves. It is completely up to the parties to decide the basis of division of assets and property distribution, thereby offering flexibility to both.
How Much Does A Binding Financial Agreement Cost?
As briefly mentioned above, the cost of preparing a prenup will vary for everyone. Certain factors that determine the cost include the time that it has taken the legal practitioners to prepare your prenup agreement, and the complexity of the assets and property involved.
Naturally, the more complex the assets and property are, solicitors will require more time to prepare a solid agreement which both parties are satisfied with.
But the most important consideration when dealing with such matters is that you have to consult an experienced family lawyer who can breakdown the cost details for you. Secondly, some firms offer fixed-fee pricing for certain services which can also help you analyse the costs.
Generally, in Australia, the cost of preparing a prenup can lie anywhere between $2000-$5000 depending upon the above-mentioned factors.
How Can JB Solicitors Help You?
We understand that taking any legal step is confusing because of the fees that are attached with it. But at JB Solicitors, we value transparency as much as you do. By contacting us, we can provide you with all details regarding costs of prenups.
Moreover, with the wealth of experience that our family solicitors have, you can rest assured that they will prepare a well-drafted binding financial agreement which will satisfy both you and your former spouse.
Family law is complicated and matters falling under family law can get very stressful if not dealt with properly. For these reasons, it is always advisable to seek legal guidance from experienced professionals who can solve all matters on your behalf.
If you choose to not prepare a BFA, there are high chances, statistically speaking, for your property settlement matter to be dealt with by courts. In such circumstances, the length and court procedures will only add to your burden.
Whether you wish to know more about the costs of BFAs, or wish to make general enquiries in this regard, please do not hesitate to reach out to our friendly team.
Contact our expert team of lawyers today.