Binding Financial Agreements After Death: What You Need to Know

A binding financial agreement (BFA) is a document that outlines the division of assets in the event of a separation or divorce. But what happens when one party passes away? Can a BFA still be enforced?

The short answer is yes, but there are several factors to consider.

Firstly, it’s important to understand that a BFA is a legally binding document. This means that the terms outlined in the agreement are enforceable by law. In the event of a separation, this can prevent costly legal battles over the division of assets. However, if one party passes away, the BFA may not necessarily be the final say on how assets are distributed.

If the deceased had a valid will, the terms of the will would take precedence over the BFA. This is because a will is considered a more recent expression of the deceased’s wishes. If the will conflicts with the BFA, the will would be the legally binding document.

If the deceased did not have a valid will, the BFA would be one of the key documents considered in the distribution of assets. However, it’s important to note that the BFA would not necessarily be the only consideration. For example, if there were other factors that could impact the distribution of assets (such as a family provision claim), these would also be taken into account.

It’s also worth considering the practicalities of enforcing a BFA after death. In most cases, the surviving party would need to go to court to have the BFA enforced. This can be a time-consuming and expensive process, and may not always be worth pursuing.

In summary, a binding financial agreement can still be enforced after death, but it’s not necessarily the final say on how assets are distributed. If the deceased had a valid will, the terms of the will would take precedence. If there was no will, the BFA would be one of the key documents considered, but other factors could also impact the distribution of assets. It’s important to consider the practicalities of enforcing a BFA after death and whether it’s worth pursuing in each individual case.