Independent Legal Advice for Binding Financial Agreements

It is a strict legal requirement that your lawyer, and the lawyer of your former partner, each provide written legal advice to their client about the advantages and disadvantages of entering a Binding Financial Agreement.

Each lawyers must ensure that they take detailed instructions from their client about all assets and liabilities, their respective financial and non-financial contributions and the current and future circumstances of their client, including their age, health, income earning capacity and the care arrangements for any children. This information is crucial for each lawyer to advise their client about their present entitlements under the Family Law Act at the time of entering into the Binding Financial Agreement.

Each lawyer must give tailored advice which is specific to their client's contributions history and current and future circumstances, not just general advice about how the law works. It is only then that you as the client will be able to compare your position with and without the Binding Financial Agreement, and weigh up the advantages and disadvantages to you of entering into it.

If the strict requirements for Independent Legal Advice are not met by both lawyers, then the Binding Financial Agreement is vulnerable to being challenged down the track.