A binding financial agreement (BFA) is a legal agreement made between two parties in a personal relationship, including marriage and de facto relationships. This agreement outlines how their property and financial resources will be divided if the relationship ends.
If you are receiving Centrelink payments, it is important to know that a BFA can affect your entitlements. Centrelink will consider the assets and income that you have access to when determining your eligibility for particular payments.
For example, if you receive a lump sum payment as part of a BFA, Centrelink may consider this as income and reduce your payments accordingly. This can also apply to ongoing payments made under the agreement if they are considered to be for your maintenance or support.
It is important to seek legal and financial advice before entering into a BFA to understand the potential impact on your Centrelink entitlements. This will help you to make an informed decision about whether a BFA is right for your situation.
It is also important to note that not all assets or income are assessable by Centrelink, and there may be ways to structure your BFA to minimize any impact on your payments. Your legal and financial advisors can help you to understand these options.
In summary, a BFA can have an impact on your Centrelink entitlements, but with the right advice, you can make an informed decision about whether it is the right option for you. Always seek professional advice before entering into any legal agreement to ensure that you fully understand your rights and responsibilities.