BFA stands for Binding Financial Agreement, which is a legal agreement to protect the interest of parties subject to the agreement.
BFAs work similar to a prenup when entering into a relationship, but are also used in separations.
In new relationships, one party may bring more to the relationship and want protection in event something goes wrong.
Young home buyers often utilise the bank of mum and dad. Parents frequently gift money to their children. What happens to this gift if the relationship splits. Does the money return to the parents, Does it pass to the parental child, or Does it get evenly split. These are circumstances that can be agreed upon upfront and documented in a BFA.
In separations, two parties may amicably decide to divide up their assets without fighting tooth and nail. A BFA can document this mutual agreement.
Talk to your legal representative about using a Binding Financial Agreement.
