Protecting Your Client's Interests: Understanding the Limitations of Binding Financial Agreements (BFAs)

Do you have a client who has previously entered into a Binding Financial Agreement (BFA) with someone other than their current spouse?

It's important to note that while a BFA can outline the division of matrimonial property upon death, it often doesn't prevent a former spouse from challenging the Will. In many Australian states, former spouses are still eligible to make a family provision claim, which could impact your client's estate planning.

What can you do?

• Review the existing BFA.

• Understand its limitations in excluding family provision claims.

• Recognize that former spouses can still challenge the Will.

• Consult with a lawyer to protect the estate from potential claims.

• Consider updating the Will and other legal documents to reflect current wishes.

• Regularly review and update the estate plan to ensure ongoing protection.

Taking these steps now can help secure your client's estate and ensure their wishes are honored.