Binding Financial Agreements

A binding financial agreement is usually divided into the following:

  1. Recitals

Rationale

  1. When listing the assets, liabilities and financial resources in the Binding Financial Agreement, some law firms list them as a schedule and others include them in sentence form. While the schedule is easier to understand and provides a simple overview of the total matrimonial asset pool, the format does not allow greater detail and elaboration for each item. Due to the limitation of a schedule, we are of the view that sentence form is the better option.

Recitals

Background Info on the Parties

  • Name

  • Date of birth

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Mark was born on 15 April 1965 in Sandringham, Victoria. He is a company director and shareholder of Ferguson's Furniture Store Pty. Ltd. (“Fergusons”). His taxable income in 2008/2009 was $120,000. His taxable income in 2009 is expected to be slightly higher. The benefits he receives from his employment are superannuation, a fully maintained motor vehicle and the payment of home telephone accounts.

  • Citizenship

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Grace was born on 2 May 1976 in Dublin, Ireland. She arrived in Australia in 1980. She is not an Australian citizen. She works part-time as a retail assistant but is otherwise engaged in home duties. Her taxable income from her employment in 2008/2009 was $4,800. She expects her taxable income in 2009/2010 to be $12,000. She also receives a part Centrelink Parenting Payment.

  • Address

  • Previous Marriage

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Neither party was previously married.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Mark was [married twice previously/not previously married]. Grace was [married once previously/not previously married].

Employment, Income

  • Occupation

    • (M A Legal)

      Riley is a Senior Associate Lawyer and derives a gross annual income of approximately $141,500.00. Riley does not otherwise earn any other taxable income.
      Stephanie is an Assistant Principal (Teacher) and derives an annual income of approximately $150,220.00. Stephanie otherwise does not earn any other taxable income.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Mark was born on 15 April 1965 in Sandringham, Victoria. He is a company director and shareholder of Ferguson's Furniture Store Pty. Ltd. (“Fergusons”). His taxable income in 2008/2009 was $120,000. His taxable income in 2009 is expected to be slightly higher. The benefits he receives from his employment are superannuation, a fully maintained motor vehicle and the payment of home telephone accounts.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Grace was born on 2 May 1976 in Dublin, Ireland. She arrived in Australia in 1980. She is not an Australian citizen. She works part-time as a retail assistant but is otherwise engaged in home duties. Her taxable income from her employment in 2008/2009 was $4,800. She expects her taxable income in 2009/2010 to be $12,000. She also receives a part Centrelink Parenting Payment.

  • Taxable Income

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Mark was born on 15 April 1965 in Sandringham, Victoria. He is a company director and shareholder of Ferguson's Furniture Store Pty. Ltd. (“Fergusons”). His taxable income in 2008/2009 was $120,000. His taxable income in 2009 is expected to be slightly higher. The benefits he receives from his employment are superannuation, a fully maintained motor vehicle and the payment of home telephone accounts.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Grace was born on 2 May 1976 in Dublin, Ireland. She arrived in Australia in 1980. She is not an Australian citizen. She works part-time as a retail assistant but is otherwise engaged in home duties. Her taxable income from her employment in 2008/2009 was $4,800. She expects her taxable income in 2009/2010 to be $12,000. She also receives a part Centrelink Parenting Payment.

    • (M A Legal)

      Riley is a Senior Associate Lawyer and derives a gross annual income of approximately $141,500.00. Riley does not otherwise earn any other taxable income.

    • (M A Legal)

      Riley is a Senior Associate Lawyer and derives a gross annual income of approximately $141,500.00. Riley does not otherwise earn any other taxable income.
      Stephanie is an Assistant Principal (Teacher) and derives an annual income of approximately $150,220.00. Stephanie otherwise does not earn any other taxable income.

  • Employment Benefits

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-765])

      Mark was born on 15 April 1965 in Sandringham, Victoria. He is a company director and shareholder of Ferguson's Furniture Store Pty. Ltd. (“Fergusons”). His taxable income in 2008/2009 was $120,000. His taxable income in 2009 is expected to be slightly higher. The benefits he receives from his employment are superannuation, a fully maintained motor vehicle and the payment of home telephone accounts.

Relationship

  • The parties have not divorced

    • The parties have not divorced but intend to apply for a decree of divorce in the near future.

    • The parties have not divorced but intend to apply for a decree of divorce in the future.

  • The parties have separated and continue to live under the same roof

    • The parties separated on a final basis on 1 August 2019 (“Date of Separation”). Both Riley and Stephanie continued to live separately but under the same roof at the former matrimonial home as at the Date of Separation and until 27 December 2020, at which time Stephanie vacated the former matrimonial home.

    • The parties separated in or about 2018 (“Date of Separation”) with both Shari and Jan living separately under the same roof for a period of six (6) months following the Date of Separation due to convenience and financial constraints; Shari thereafter vacated the shared residence at 33 Newman Street, Thornbury in the State of Victoria.

  • The parties separated and one party left the matrimonial home

    • Ivana and Robert finally separated on 10 August 2017 (“Date of Separation”) with Robert vacating their shared residence situate at 49 Beverley Road, Heidelberg in the State of Victoria (“the former matrimonial home”).

    • The parties separated on a final basis on or about 1 August 2019 (the “Date of Separation”). MaryAnne vacated the former matrimonial home situate at 19 Sandhurst Crescent, Bundoora in the State of Victoria.

  • Children

Assets

Tony and MaryAnn own the following property for adjustment as at the date of this Agreement:

  • Property

    • (M A Legal)
      Real Property situate at and known as 19 Sandhurst Crescent, Bundoora in the State of Victoria (“the Former Matrimonial Home”) being the whole of the land more particularly described in Certificate of Title Volume 11521 Folio 265, with Tony and MaryAnn being registered as Joint Proprietors and with an agreed value of approximately $710,000.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-785])
      Mark and Grace are registered as [joint proprietors/tenants in common in equal shares] of the land situated at and known as 172 Doncaster Road, Doncaster in the State of Victoria and being the land more particularly described in Certificate of Title Volume 5653 Folio 429 (“the home”).

      The value of the home is approximately $650,000. This figure is [the average of two market appraisals obtained by the Wife/the capital improved valuation on the most recent principal rate certificate/a valuation of the home obtained jointly by the parties from Valid Valuers dated 4 August 2009/the midpoint of the parties’ estimates/the midpoint of five market appraisals obtained individually by the parties].

      The home is subject to a registered first mortgage no K125764 to East-West Bank. As at 30 March 2009, the balance owing on the mortgage was $157,254 (“the mortgage”) [OR if more than one mortgage, some other description such as “the first mortgage” or “the Commonwealth Bank mortgage”] is $[amount] [Repeat this paragraph for each mortgage]

  • Car

    • Tony’s 2003 Holden Jackaroo Motor Vehicle, registration number “WWC 197”, registered in Tony’s sole name, unencumbered, and with an agreed value of approximately $2,500 (“Tony’s Motor Vehicle”).

  • Boat

    • Tony’s Maxum Boat, registration number “WWC 197”, registered in Tony’s sole name, unencumbered, and with an agreed value of approximately $5,000 (“Tony’s Boat”).

  • Bank

    • A joint bank account held with Westpac Banking Corporation, Account Number 733 138 811461 with Riley and Stephanie being joint holders and with a balance of approximately $123,936.94 stating to the credit of the same.

    • Tony’s bank account held with Westpac Banking Corporation, Account Number 733 138 811461 and with a balance of approximately $10,000 stating to the credit of the same.

  • Personal Items

    • Personal effects owned by Riley and in Riley’s possession as at the Date of Separation of negligible value of which both parties are aware and agree to be of such minor nature as to not warrant particularisation herein.

  • Shares

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Grace owns 500 BHP-Billiton shares and 500 David Jones shares with a total value of $30,000.

  • Superannuation

    • (M A Legal)

      Tony’s superannuation entitlement with Hostplus Superannuation Fund member number 103112813 in the amount of approximately $86,500.00.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark has superannuation entitlements of $200,000 with Comsuper. His entitlements totalled $20,000 at the [date of the marriage/commencement of the de facto relationship]. A valuation as at [date] by [valuer] is annexed and marked Schedule D.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark has no superannuation entitlements.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Grace has superannuation entitlements of $50,000 with REST.

  • Trust

    • Further to Schedule 1, Ivana is one of three appointors of the Sanelli Family Trust with the Trust Deed naming her parents as the Specified Beneficiaries. Additionally, Ivana is one of three directors and shareholders of Sanelli investments Pty Ltd (ACN 077 333 414) which is the corporate trustee of the Sanelli Family Trust. Sanelli Investments Pty Ltd as trustee for the Sanelli Family Trust is the registered proprietor of a property situate at 14 Dalgleish Avenue, Rosebud in the State of Victoria more specifically described in Certificate of Title Volume 06597 Folio 230 (“the Rosebud Property”).

    • Robert is the sole director and secretary of XBAU Pty Ltd (ACN 081 961 391) which acts as the corporate trustee of the Bau Family Trust. Ivana and Robert are shareholders of XBau Pty Ltd (ACN 081 961 391).

      Robert is appointed as the principal of the Bau Family Trust and one of the primary beneficiaries of the Trust. Ivana is also a primary beneficiary of the Bau Family Trust. 

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      By a deed of trust dated [date] the settlor of the [name of trust] settled upon [name of trustee] a trust fund (the “trust”). The beneficiaries include [specify names of relevant beneficiaries]. The parties are the appointors of the trust. The parties are the only directors of [name of trustee] and each hold half of the issued shares.

  • Company

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark beneficially owns [all/25%] of the issued shares of JS Pty. Ltd. (the “company”). He is [the only director/one of 4 directors/not a director] of the company. The company secretary is [name]. The registered office of the company is [address]. The company carries on the business of [description of business].

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark and Grace beneficially own [all/50% each/75% and 25% respectively] of the issued shares of [name of company] (the “company”) and are the only directors of the company. Mark is the company secretary. The registered office of the company is [address]. The company carries on the business of [description of business].

  • Partnership

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark has conducted a juice retailing business known as “James’ Juices” for the past seven years in partnership with James Jamieson. There is [a partnership agreement dated [date]/no formal partnership agreement].

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      The parties have since [date] conducted in partnership a business known as [name]. The partnership carries on the business of [description of business]. There is [a partnership agreement dated [date]/no formal partnership agreement].

  • No other property

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark has other property, liabilities and financial resources as set out in Schedule A.
      Grace has other property, liabilities, and financial resources as set out in Schedule B.

      The parties have other property, liabilities and financial resources as set out in Schedule C.

    • (CCH, Australian Law Handbook Practical Tools (online at 26 September 2021) [¶30-790])

      Mark has no other property, liabilities or financial resources.

      Grace has no other property, liabilities or financial resources.

    • The parties have no other property, liabilities or financial resources.

  • Household Items

    • Household chattels including furniture, appliances, electronics, décor and effects in MaryAnn’s possession collectively valued at approximately $5,000.

Debts

Riley and Stephanie are liable for the following debts as at the date of this Agreement:

Contributions

  • Equal

  • The parties acknowledge and agree that they both made direct and indirect, financial and non-financial contributions to the acquisition, conservation, maintenance and improvement of the property of the parties as at separation and as the date of this Agreement.

    Neither party has made any extraordinary or significant contribution towards the assets and liabilities of the relationship other than outlined in this Agreement.