Description
This template is for legal practitioners. This is a standalone template, priced for professional use. If you are not a lawyer, please use our BFA Planner, designed for individuals and couples to handle this themselves.
An isolation agreement is a type of Binding Financial Agreement (BFA) that is designed to protect a specific asset rather than deal with the parties’ entire financial relationship. For example, it might isolate a family home, a business, or a future inheritance from any claim by the other party.
A standard BFA usually deals with all of the parties’ property and financial resources. Once it has been properly signed and complies with the requirements of the Family Law Act 1975, it essentially prevents either party from asking the Family Court to determine how their property should be divided while the agreement remains in force.
An isolation agreement works differently. It only removes the specified asset from the equation. If the parties later separate, they still retain the right to ask the Family Court to determine a fair and equitable division of their remaining property. However, in doing so, the court must disregard the isolated asset because the parties have already agreed that it is not to form part of the property available for division.
