VIC Queries regarding financial binding agreement in Victoria

[Ven55]

Hello,

I have a financial binding agreement with my wife that was made after independent consultation.

• It states that each of us cannot claim anything from the properties that we had before marriage.
• Each of us is sharing living expenses and will not claim anything from the other party in case of separation. It details all properties, bank balance, mortgage, and assets.
• It states that the shared property would be sold and the outcome would be equally distributed. Each of us is paying equal share of its mortgage

Since then- we have sold one car and purchased another. Bank balance also got changed as its been 4 years since we got that done. Other than that, there are no changes such as no children and no new properties.
Questions-
1. Would it be still valid in court, in the case of separation.
2. In general, when a mutual financial binding agreement is there, how likely the court will accept if a party challenges it and demands money/property/alimony from other.
3. If I have to buy another property, and I get another binding agreement listing that, would I be risk free in case of a separation?

If I have to consult a professional lawyer, what would be the charges? Also, charges for making an updated financial binding agreement.

Thanks for the help.

 

[Noel Harris]

A properly executed Binding Financial Agreement (BFA) doesn't become invalid just because ordinary life has moved on. Selling one car and buying another, or bank balances fluctuating over four years, is the kind of everyday change a well-drafted agreement is designed to absorb, particularly if it deals with categories of assets rather than a fixed snapshot list.

BFAs can only be set aside on specific grounds under the Family Law Act, including things like fraud, non-disclosure, unconscionable conduct, the agreement becoming impracticable to carry out, or a material change in circumstances relating to children (which doesn't apply in your case). A party simply deciding they don't like the outcome isn't enough on its own to unwind it, provided both of you received independent legal advice at the time, which it sounds like you did.

If you buy another property, the safest approach is usually to have the existing agreement formally reviewed and updated, or to enter into a fresh agreement covering the new asset, with both of you again obtaining independent legal advice. This is what keeps an agreement binding and reduces the risk of a successful challenge down the track. Costs vary by firm and complexity, but a variation is typically more contained than a first agreement since the groundwork is already done. It's worth getting a specific quote for both the review of your current agreement and the cost of updating it before your next purchase.

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Disclaimer: Please note information in this response is general in nature and should not be treated as legal advice. It may not be complete or up to date for your specific situation. Independent legal advice is always recommended.