Meet Mark (45) and Sarah (43). After 15 years together, their relationship was over. But they weren’t in a bitter court battle. They had already reached a surprisingly calm and pragmatic agreement: a 70/30 split of their assets in Mark’s favour.
You might think that’s unfair, but for them, it was the only way forward. The family’s main asset was Mark’s electrical business, which he had spent his life building. They both knew that forcing a 50/50 split would mean selling off business assets, destroying their primary source of income and putting their children’s future at risk.
Their goal wasn’t to get what a judge thought was fair; they simply wanted to make their own separation agreement legally binding so they could finally move on.
Formalising Your Financial Agreement After Separation: Your Options
When you’ve separated and agreed on how to divide your assets, there are two primary legal pathways to finalise your divorce property settlement without going to court:
- Consent Orders: This pathway involves submitting your agreement to the Family Court for review. A court official checks it to ensure it’s “just and equitable.” Once approved, it becomes a legally binding court order.
- Binding Financial Agreement (BFA): A BFA is a private, legally binding contract between you and your former partner. It finalises your financial relationship without any court review or approval.
For Mark and Sarah, understanding this key difference was everything. They needed a solution that honoured their unique arrangement, not one subject to a judge’s potential re-evaluation.
Why Choose a Binding Financial Agreement for an Unequal Split or Business Assets?
How do you know if a BFA is the right choice for your situation, especially if your property division isn’t a simple 50/50? Here are key reasons many couples, like Mark and Sarah, opt for a BFA:
- To Legalise an Unequal Property Split: If your agreement is more unique, or perhaps involves protecting a family business in divorce that a court might view as “not just and equitable” in a standard split, a BFA can legally lock in a wider range of agreements, provided the strict legal process is followed. This gave Mark and Sarah the power to keep the business intact, which is crucial when assets are tied up in a small business.
- For Maximum Privacy: A BFA is a completely private document that is not filed with the court. If you want to keep the details of your financial settlement confidential, a BFA is the best choice, offering a private divorce settlement solution.
- For Faster Resolution: Since a BFA doesn’t require court review, it can be signed and exchanged quickly, often in a matter of days. This speed is crucial for those needing a swift resolution, perhaps to finalise a house sale or secure urgent financial approval, making it an option for a fast property settlement.
Both Consent Orders and BFAs are excellent tools for finalising a property settlement, but they are designed for slightly different circumstances. Your goal is to choose the one that best fits your specific situation and gives you the certainty and control you need to move on, particularly if you’re looking for ways to make an unequal property split legally binding.
Avoid High Legal Costs: Finalise Your Agreement with SplitWise
Mark and Sarah were stressed enough without the added burden of exorbitant legal fees. If you’ve reached an agreement and want a cost-effective, consumer-first approach to family law that helps you formalise your financial split, SplitWise can help.