In recent months news outlets have reported that popstar Britney Spears has married her fiancé and third Husband Sam Asghari. It has been reported that prior to the wedding the parties signed an ‘iron clad’ Prenup (or as it is called in Australia a Binding Financial Agreement). Given the performers’ sizeable fortune it is not surprising that Britney has taken protective measures to ensure that her multimillion dollar earnings and her children’s future inheritance will be protected in the case she files for a fourth divorce!
Whilst Britney’s wealth is not relatable to most, the principles that likely lead to her having a pre-nup are quite common.
The Family Law Act 1975 (“the FLA”) provides for a process for the division of assets between parties to a married relationship. A Binding Financial Agreement (“BFA”) is a private contract which sets aside the process under the FLA and substitutes it with the regime that is described in the Agreement. This provides couples with the flexibility to outline exactly what they want to occur with their assets and liabilities in the event that they separate.
In cases like Britney’s where one person brings significantly more assets and wealth into the relationship the Agreement may include provisions whereby the other party forgoes any interest in the assets that they would have otherwise accumulated during the relationship.
The flexibility of a BFA also allows couples to specify their ‘separate property’ which the other has no claim and to make arrangements for the division of joint assets which may be purchased in the future.
If you have any assets you want to protect from claim by your spouse, or if you just want peace of mind that if you separate you have a ready actionable plan in place, then we recommend speaking to a Family Lawyer regarding the suitability of BFA.
We note that a BFA can be obtained by defacto couples, engaged couples, married couples and separated couples. Whether you are a millionaire popstar like Britney or just an everyday ordinary person a BFA can be tailored to your needs!
If you would like any further information on Binding Financial Agreements, please contact our experienced family lawyers at Nevett Ford Lawyers on (03) 9614 7111.