In Family Law, Binding Financial Agreements (BFAs) are supposed to bring closure and fairness to separating couples. However, even when both parties agree to terms and sign on the dotted line, things can quickly unravel. Dragomirov v Dragomirov highlights how seemingly small mistakes in legal agreements can lead to prolonged disputes in court.
Here at Rowan Skinner and Associates Lawyers, we are experienced Family Law experts, particularly in relation to drafting and reviewing binding financial agreements. Our team is here to guide you through the process and ensure no such mistakes arise with your financial agreement.
Legal Advice and the Importance of Getting It Right
At the heart of this case lies the crucial requirement for independent legal advice. Under the Family Law Act, both parties must receive tailored advice about the potential consequences of signing a financial agreement. The court refers to this as “case-specific legal advice.” It’s not enough to simply be told about the general principles of property division.
Here, the Wife argued that she didn’t receive the level of detailed advice she needed to fully understand her entitlements. The Court of Appeal agreed with her on this point. They found that the advice she received fell short of the legal standard required.
However, this doesn’t mean the entire agreement was thrown out. The Court emphasised that while independent legal advice was not properly provided in this case, the agreement still stood. Why? Because the agreement was seen as just and equitable despite the flaws in the advice given. This underscores a key lesson for anyone entering a financial agreement: ensure that the legal advice you receive isn’t just general—it must be specific to your case.
When Legal Claims Don’t Hold Up
The Wife made several claims, including accusations of forgery and unconscionable conduct. However, the Court found that there was no solid evidence to support these claims and dismissed them. This highlights another crucial lesson: legal claims need to be backed by strong evidence. Without solid proof, even the most serious accusations can fall apart in court.
The Court also dismissed the Wife’s claims of undue influence. They found that the Husband did not exert pressure during the negotiations. This reaffirms the idea that both parties must enter into agreements freely and without coercion. But if one party believes they were coerced, they must provide clear evidence of their claims.
Key Takeaways: Be Thorough and Seek Expert Guidance
At its core, this case is a cautionary tale about the importance of thoroughness in Family Law settlements. It underscores the need for both parties to fully understand the implications of any financial agreement they sign. It also emphasises the need to ensure that each party receives specific, case-related advice.
For anyone entering a financial settlement—whether in marriage or separation—seeking independent, expert legal advice is non-negotiable. Relying on generic advice or overlooking critical details can result in years of legal battles and mounting costs. In Family Law, the devil is in the details, and even small mistakes can have serious consequences.
In the end, the Wife lost her appeal and was ordered to pay the Husband’s legal fees. This is a stark reminder of the high cost of poorly executed legal agreements. As with any contract, it’s essential to get it right the first time. Otherwise, the costs—both financial and emotional—can be far higher than anticipated.
Rowan Skinner is a highly skilled family lawyer with over 35 years of experience across various legal roles and jurisdictions. Rowan specialises in resolving family law disputes such as divorce, financial settlements, child custody and domestic violence cases. Through his diverse and extensive experience, Rowan has a deep understanding of the complexities and nuances involved in family law. Rowan is a skilled negotiator and litigator who follows a compassionate and client-focused approach which prioritises helping you navigate what can be an emotional and challenging time.