The main causes of binding financial agreements (BFAs) being set aside by Australian courts include the following:
Non-disclosure or Incomplete Disclosure
One of the parties may not have provided full and accurate financial disclosure during the negotiation of the agreement. If it can be shown that important financial information was concealed or misrepresented, the court may set aside the agreement.
Duress or Undue Influence
If one party was coerced, forced, or unduly influenced into entering the agreement against their will, the court may consider it unfair and set it aside.
Unconscionable Conduct
This refers to situations where there is a significant power imbalance between the parties, and one party takes advantage of the other’s vulnerability or lack of understanding to secure an unfair agreement.
Fraud or Misrepresentation
If one party knowingly provides false information or misrepresents material facts to induce the other party into entering the agreement, it can be invalidated by the court.
Failure to Obtain Independent Legal Advice
Each party to a BFA is required to seek independent legal advice before signing it. If a party does not receive proper legal advice or feels pressured to forego it, the court may consider setting aside the agreement.
Significant Change in Circumstances
Sometimes, circumstances may change significantly after the agreement is made, rendering its terms unfair or impracticable. In such cases, the court may set aside or modify the agreement.
Technical Errors or Invalidity
If the agreement does not meet the specific legal requirements set out in the Family Law Act, it may be considered invalid and set aside.
It is important to note that family law matters, including BFAs, can be complex and case-specific. If you are dealing with such a situation, it is essential to consult with a qualified family lawyer who can provide up-to-date advice based on the latest legal developments and precedents.
